TotalEnergies has entered into four new Production Sharing Contracts (PSCs) covering offshore exploration blocks LB-6, LB-11, LB-17, and LB-29 in Liberia’s southern basin. The agreements, signed following the 2024 Direct Negotiation Licensing Round led by the Liberia Petroleum Regulatory Agency, span an area of roughly 12,700 square kilometers.
Under these oil exploration contracts, the company will begin with a work programme focused on the acquisition of three-dimensional (3D) seismic data, designed to evaluate hydrocarbon potential. This early stage is intended to identify promising geological structures before considering any move toward exploratory drilling. Kevin McLachlan, Senior Vice President Exploration at TotalEnergies, commented that “entry into these blocks aligns with our strategy to diversify our exploration portfolio toward new high-potential oil basins,” underscoring the firm’s emphasis on cost-effective resources in valuable environments.
By securing these oil exploration contracts, TotalEnergies consolidates its position in West Africa, where it already manages projects in Angola, Nigeria, and the Republic of the Congo. For Liberia, the deals are an attempt to bring life to its oil industry after years of spotty production, with terms aimed to benefit local involvement. I could also help to boost economic development in the African nation.
Installation of the PSCs is seen as a milestone for Liberia’s oil and gas sector. Once interpreted, the seismic data will determine the scope of progressing to drilling. A positive result would lead to other operators following up on the opportunity, stimulating more activity in this underdeveloped basin.