New Era For The Flippers
NOVEMBER 21, Edition of the SPOON show, the lead Moderator displayed a list of companies expected to acquire petroleum rights in Liberia through Direct Negotiation with the Government of Liberia through the Liberia Petroleum Regulatory (LPRA). Given Liberia’s history with the award of petroleum rights, the mismanagement of petroleum resources and the potential of the sector to transform the country if managed with more national interest and less personal interests, Liberia Early Warning Watch (LEW-WATCH) launched an investigation into the allegation, the track records of the companies and their affiliates. Liberia Early Warning Watch (LEW-WATCH) has confirmed that the Liberia Petroleum Regulatory Authority (LPRA) is preparing to award nine additional oil blocks to five companies reminiscent of Oranto Petroleum, deepening Liberia’s ongoing resource mismanagement crisis and heightening concerns among experts and the public about how a handful of administrators are handling the nation’s oil program with less regard for the interest of the country and more for the satisfaction of private companies and their associates in and out of the government. Still grappling with questionable rationales behind Liberia’s award for Blocks LB-15, LB-16, LB-22, and LB-24 to Atlas Oranto Petroleum Liberia Limited, whose agreement was recently terminated in Senegal for failure to comply with contract terms and whose owner, Arthur Ize, reportedly remains on alert for his closed ties to disposed Venezuela President, Liberia’s Finance Minister, Justice Minister, Head of Petroleum Regulatory Authority and the Head of the Liberia Revenue Authority are reportedly poised to sign new Production Sharing Contracts (PSCs) with companies that are mostly similar to Oranto. NO Company Block Location Company’s Highlights 1 Binad Oil and Gas Services Block-8 Nigeria Logistic and service company for oil companies, supplying and installing equipment, providing haulage services, water processing services and supplying general merchandise. Binad’s major shareholders, Ogiriki Dennis Eradiril and Aggrey Deinyeffa are longtime associates of Prince Arthur Ize, owner of Oranto. 2 Tarrock Integrated Oil & Gas Block-9 Nigeria No information found online and other official sources for Tarrock 3 Cabral Energy LLC Blocks 2, 3 & 4 USA Cabral Energy LLC, (ID 802540208), Established in 2016 and engages in petroleum data analysis, management and operational consulting. A research subsidiary for a water recycling company. 4 Transoceanic Energy Group Block- 27 Nigeria The company focuses on natural gas and has activities in upstream exploration, midstream infrastructure, gas processing, and power solutions. 5 Liberty Petroleum Block- 32 USA Liberty has acquired exploration blocks and invested in exploration and drilling programs. Currently holds a license in Somalia and has partnerships with major oil companies. Binad Oil and Gas Services Ltd (NIGERIA) record shows that the company is a logistic and general merchandise supplier for oil & gas companies. The company writes: “Binad core business includes the supply of oil and gas equipment, haulage services, and the provision of water processing equipment, solar panels, and street lighting solutions. We also engage in general contracts and merchandise.” Cabral Energy LLC, (USA) is a limited liability company (ID 802540208). Records assessed by LEW-WATCH show that the company is mostly a Startup or early-stage business that is engaging in petroleum data analysis, operational consulting, and project management. The company has no experience as an exploration company and its claim of being operating in other countries in Africa cannot be verified. Transoceanic Energy Group, registered in Nigeria on September 16, 2023 (RC-7229032), The company focuses on Liquified Natural Gas. Information assessed by LEW-WATCH shows that Transoceanic collects raw natural gas from production fields. Transoceanic claims of having an operational exploration and production subsidiary could not be confirmed by official and other sources. Tarrock Integrated Oil & Gas (NIGERIA): LEW-WATCH could not find information on Tarrock. Liberty Petroleum (USA). The company was founded in 1997 and once acquired an exploration license in Liberia as part of partnership with a local oil company owned by the late McDonald Wento. Liberty Petroleum and its local partner could not meet the fiscal requirement for the block, and the contract did not go into force. However, the company has in recent times acquired exploration blocks and invested in exploration and drilling programs. The company currently holds an exploration license in Somalia has partnerships with other major oil companies. Awarding petroleum rights to Oranto and companies of its kind denies the country the opportunity to award the blocks to competent and credible companies that may have interest in acquiring petroleum rights in Liberia as the blocks will be under contract to companies with no capacity to execute drilling activities. LEW-WATCH encourages high level discussion with global partners, international transparency groups, national civil society movements to take step and prevent a 2nd round of skewing Liberia’s petroleum sector towards personal benefits against national interests. “Flippers” Enablers: Under Liberia’s Petroleum Law, the Liberia Petroleum Regulatory Agency (LPRA) Ministry of Finance and Development Planning (MFDP) and Ministry of Justice (MOJ) are responsible to negotiate and sign petroleum agreements on behalf of Liberia. LPRA leads and coordinate the negotiations, the MFDP ensures the financial components of each agreement are in the best interest of the country, the Ministry of Justice is responsible to ensure every agreement meets Liberian law and there are legal safeguards to protect the country and the Liberia Revenue Authority is responsible to ensure taxes are captured in ways that protect the country’s interest.