The National Oil Company of Liberia (NOCAL) has been outlining the importance of the local content component of the recently signed and rectified LB-16.
NOCAL President and Chief Executive Officer (CEO) Dr. Randolph McClain, making a power-point presentation before journalists at the Ministry of Information yesterday noted that a big objective of this bid round was to get Liberian companies involved in the oil sector as partners in exploration.
He said that is why there was a built-in incentive for bidding groups to include Liberian companies, saying, “NOCAL is very happy that the LB-16 bid includes the New Millennium Corporation (NMC).”
The NOCAL CEO said NMC will be a partner in the exploration of the block, holding a five percent equity share.
Dr. McClain noted that it means Liberians are starting to have Liberian companies participate in its upstream exploration sector.
Giving more details on the LB-16 bid and contract, Dr. McClain said this contract has been put forward because it was the best bid received for this block.
He said the signature bonus offer, from Liberty Petroleum and their partners which is US$10.5 million was the highest bid received for Block LB-16.
Dr. McClain said with additional funds due and payable for the acquisition of seismic data for LB-16 which is US$11.5million, the total amount to be received from the transaction for LB-16 is US$22million.
Dr. McClain said, “This provides essential revenue for Liberia in its time of economic crisis due to Ebola and it also contains a local content component, which means that a Liberian company is part of the contract.”