TotalEnergies has signed four production sharing contracts worth an estimated $200 million each for offshore exploration blocks in Liberia, marking the French energy major’s most significant African exploration commitment since 2020 and positioning the company to capitalize on what industry analysts project could yield up to 1 billion barrels of oil by 2035.
The contracts, signed September 17 in Paris, cover blocks LB-6, LB-11, LB-17, and LB-29 offshore Liberia, which were awarded following the West African nation’s 2024 Direct Negotiation Licensing Round organized by the Liberia Petroleum Regulatory Agency. The four blocks collectively cover approximately 12,700 square kilometers in the southern Liberia Basin.
The agreements represent TotalEnergies’ return to frontier exploration markets after several years focused on established production assets. The company has already invested $3.5 million in acquiring seismic data, demonstrating confidence in the blocks’ commercial potential ahead of formal contract signing.
Liberia’s 29 offshore blocks could yield up to 1 billion barrels of oil by 2035 according to the Liberia Petroleum Regulatory Authority, representing substantial reserves that could transform the country into a significant West African oil producer. The projection builds on extensive geological surveys that have identified promising hydrocarbon indicators across multiple offshore basins.
The production sharing contracts benefit from comprehensive seismic data coverage including over 24,000 kilometers of 2D seismic data and more than 26,000 square kilometers of 3D seismic data provided through a partnership between the Liberian government and energy data firm TGS. This data foundation reduces exploration risk and accelerates development timelines for successful discoveries.
As part of the work program, TotalEnergies will acquire one firm 3D seismic survey to enhance geological understanding of the blocks. The commitment represents the initial phase of exploration activities that could extend over several years depending on geological findings and commercial assessments.
The 2024 licensing round featured 29 blocks across the Liberia and Harper Basins, offering opportunities for both international oil companies and smaller independents, reflecting the government’s strategy to diversify investor participation while maximizing technical and financial capacity for offshore development.
The signing comes as Liberia implements comprehensive reforms to attract upstream investment following amendments to the Exploration and Production Law in 2019. The reforms established transparent and competitive processes while providing 100% cost-recovery on pre-PSC seismic data, significantly improving the commercial attractiveness of Liberian exploration opportunities.
For TotalEnergies, the Liberian contracts expand the company’s African exploration portfolio at a time when major oil companies face pressure to replace depleting reserves while maintaining capital discipline. The blocks offer potential for large-scale discoveries that align with the company’s strategy of focusing on high-return, low-emission developments.
NJ Ayuk, Executive Chairman of the African Energy Chamber, positioned the agreements as evidence of “Liberia’s resurgence as a competitive frontier for oil and gas investment,” highlighting the combination of TotalEnergies’ expertise with proactive government reforms as creating conditions for new discoveries and job creation.
The blocks are located in geological formations spanning syn-rift Lower Cretaceous to deepwater Upper Cretaceous layers, offering diverse source rock intervals that support multiple exploration scenarios. The geological diversity increases prospects for commercial discoveries while providing multiple development options if exploration proves successful.
Liberia’s offshore basins remain largely under-explored compared to neighboring countries, presenting both opportunities and risks for international oil companies. The extensive seismic data coverage helps mitigate exploration risk while the government’s reformed fiscal terms provide attractive investment conditions for successful developments.
The production sharing contracts position TotalEnergies to benefit from potential discoveries while contributing to Liberian economic development through job creation, skills transfer, and revenue generation. Successful exploration could establish Liberia as a significant oil producer and provide substantial government revenues for development financing.
The timing proves strategic as global oil companies balance energy transition commitments with the need to maintain profitable operations and replace declining reserves. Frontier exploration in under-explored basins like Liberia offers potential for low-cost discoveries that generate strong returns while supporting host country development.
Industry observers view the TotalEnergies commitment as potentially catalyzing broader international interest in Liberian exploration opportunities. The company’s technical expertise and financial capacity provide credibility that could attract additional investors to remaining available blocks in future licensing rounds.
For Liberia, the TotalEnergies contracts represent validation of the country’s reformed regulatory framework and strategic approach to attracting quality international investment in the oil and gas sector.
Source: newsghana.com.gh
