Paris, France – Liberia has signed a landmark Production Sharing Contract (PSC) with TotalEnergies, signaling a major step toward reviving the nation’s oil and gas sector. The agreement, finalized on September 15, 2025, at TotalEnergies’ Global Headquarters in Paris, covers four offshore blocks—LB-6, LB-11, LB-17, and LB-29—with a combined estimated investment value of US$800 million.
The deal includes a signature bonus of US$16 million and follows TotalEnergies’ earlier investment of US$3.5 million to acquire seismic data, demonstrating the company’s confidence in Liberia’s hydrocarbon potential. The signing comes at a time when Liberia is seeking to diversify its economy, create jobs, and expand its revenue base beyond traditional reliance on rubber, iron ore, and agriculture.
In a statement following the signing, President Joseph Nyuma Boakai described the PSC as a “historic step” toward reviving Liberia’s oil and gas sector after more than a decade of inactivity.
“Once sent to the Legislature for ratification and signed, these agreements will open doors for jobs, skills development, investment, and sustainable growth,” President Boakai said. “They reflect our commitment to transparency, safety, environmental care, and ensuring that Liberia’s natural resources work for the benefit of our people. Together, we are charting a path where our resources create lasting value for every Liberian today and for generations to come. This is how we Think Liberia, Love Liberia, and Build Liberia—one sector at a time.”
Representing Liberia at the signing were Hon. Fabian Michael Lai, President and CEO of the National Oil Company of Liberia (NOCAL); Hon. Augustine Kpehe Ngafuan, Minister of Finance; Hon. Cllr. N. Oswald Tweh, Minister of Justice; and Hon. Marilyn Logan, Director General of the Liberia Petroleum Regulatory Authority (LPRA). These senior officials played key roles in negotiations, ensuring that Liberia’s interests were protected and that the agreement reflects international best practices.
TotalEnergies is one of the world’s largest integrated energy companies, with operations in over 120 countries and a workforce of nearly 100,000 people. The French energy giant produces approximately 2.4 million barrels of oil equivalent per day, with a strong focus on natural gas, which represents roughly half of its production. Beyond hydrocarbons, TotalEnergies is increasingly positioning itself as a key player in the global energy transition, with over 30 gigawatts of renewable electricity capacity already installed and plans to expand that portfolio significantly by 2030.
Despite the challenges of a softer global energy market in 2024, TotalEnergies reported a robust US$18 billion profit, demonstrating its resilience and financial strength. This capacity enables the company to commit to major exploration ventures, such as the Liberian offshore blocks, while balancing investments in solar, wind, and battery storage projects worldwide.
TotalEnergies also brings significant technical experience in deepwater exploration, particularly in the West African Transform Margin where Liberia is located. The company has previously operated or partnered in oil blocks off the coasts of Ghana, Côte d’Ivoire, and Nigeria, giving it a strong regional understanding of geology and operational risks.
Liberia’s oil sector has been characterized by high hopes but limited production results. Exploration activity dates back to the 1970s, but the country has yet to achieve commercial production. Over the past two decades, several international oil companies—including ExxonMobil, Chevron, and Anadarko—have explored Liberia’s offshore acreage but withdrew after unsuccessful drilling campaigns. This left the sector dormant for nearly a decade.
In recent years, the Liberia Petroleum Regulatory Authority (LPRA) and the National Oil Company of Liberia (NOCAL) have worked to improve the regulatory framework, market the country’s offshore potential, and rebuild investor confidence. The signing with TotalEnergies represents the most significant breakthrough in the sector since the passage of the Petroleum (Exploration and Production) Reform Act of 2019, which introduced a more transparent and competitive licensing system.
Industry analysts say the TotalEnergies deal could be a game-changer. If exploration leads to commercially viable discoveries, Liberia could see a boost in government revenue, foreign exchange earnings, and infrastructure investment—mirroring developments seen in neighboring countries like Ghana, which transformed its economy after first oil production in 2010.
The PSC agreements include funding earmarked for capacity building, with a focus on training Liberians in technical, managerial, and regulatory roles. This is critical for ensuring that the benefits of the oil and gas industry are widely shared and that a domestic workforce can participate meaningfully in the sector. NOCAL and LPRA are expected to collaborate with local universities and training institutes to design programs that prepare young Liberians for jobs in exploration, drilling, logistics, and environmental monitoring.
The next step for the agreement is legislative ratification by the Liberian Legislature. Once approved, TotalEnergies will proceed with exploration work, including further seismic studies and exploratory drilling. These activities will be closely monitored by LPRA to ensure compliance with environmental and safety standards.
Observers say the Boakai administration is under pressure to manage the sector carefully to avoid the so-called “resource curse,” which has plagued some resource-rich countries. However, with the combination of a reformed regulatory regime, a reputable international operator, and strong political will, Liberia may finally be on the path to realizing the promise of its oil sector.
This partnership is expected to strengthen Liberia’s energy outlook, attract additional investment, and create opportunities that align with the country’s broader development agenda. If successful, Liberia could join the ranks of Africa’s oil producers, with the potential to channel revenues into health, education, infrastructure, and social development.
For now, the signing in Paris is being hailed as a turning point—one that may well redefine Liberia’s economic trajectory in the years to come.
