|
|
|
|
||
Liberia: Lawmakers Put On Hold 7 Oil BlocksLIBERIA: Oil Discovery! Lawmakers Put On Hold 7 Oil Blocks
The National Legislature following the completion of an investigation by its Joint Legislative Committee on Ways, Means and Finance; Lands, Mines and Energy; State Enterprises and Public Accounts and Expenditure on the controversial oil Block LB13, currently owned by Broadway (operating under its new name, Peppercoast PLC) has immediately put an end to all existing production sharing contracts (PSCs) and/or Addendums of such, be reviewed for compliance with All Provisions of the New Petroleum Law of Liberia 2002.
The committees report made public Tuesday also ruled that all negotiations on offshore Blocks 1-7 and on all ultra-deep water blocks be suspended until a review of the Act which created the National Oil Company of Liberia (NOCAL) in 2000; the enactment of a Comprehensive National Oil Content Law to take care of all aspects of the inclusion of local content; and the review and revision of the 2002 Petroleum Law of Liberia. The committees also recommended that ongoing negotiations on the Offshore Block 13 between NOCAL,Peppercoast Petroleum Plc (formerly Broadway Consolidated Plc),Canadian Overseas Petroleum Limited (COPL), and ExxonMobil continue in full observance and compliance of All Provisions of the existing Petroleum Law of Liberia with the intent to generate revenue for the Government and people of Liberia in an amount not less than $27(twenty-seven) Million United States Dollars. The committee said the decision to award any future offshore oil block even after the laws are harmonized, be a National decision and channeled through a competitive bidding process. The investigation was initiated by Representative Emmanuel J. Nuquay (Margibi County) who on February 13, 2012, wrote to plenary to flag a number of issues pertinent to the resolution of the Block 13 saga and the execution of the Fiscal Year 2011/2012 national budget which stood the risk of not realizing 27 million dollars captured and appropriated on account of block LB13. The investigation observed that previous NOCAL leadership failed to execute the mandate of the Legislature by not completing negotiations on block LB13 thus creating a risky revenue situation of $27 million in the FY 2011/2012 national budget. According to the committee probe, the successful execution of the FY 2011/2012 National budget is being further undermined by the deposit of the proceeds of the Japanese food and aid product into an escrow account at CBL rather than the Government’s consolidated account. Owing to this mandate, the joint committee proceeded forthwith to investigate and submit its findings to plenary. The joint committee in investigating the Block LB 13 and the issue of $27 million dollars captured in the national budget, had series of consultative talks and meetings with authorities at NOCAL and the Ministry of Finance. “The Joint Committee requested for all necessary documents associated with NOCAL, Block 13 and other contracts negotiated by the Executive Branch and ratified by the Legislature. Owing to the discovery of oil in Liberia the vast revenue boom that could be associated with said discovery, the joint committee specifically delved into an extensive review of NOCAL existing laws, and activities to establish whether there exist further threat to the country’s shareholding and revenues generally.” The report observed that after extensive review and investigation of NOCAL’s activities, the US$27 million captured in the National Budget was based on proposal tendered by a Russian company, GAZPROM, which does not meet constitutionally derived Foreign Policy considerations of the Government for Block LB 13.
Last Updated (Wednesday, 07 March 2012 12:16) |
return to message board, top of board |