Illegal Oil Block Allocation: A Breach of Petroleum Law and Repetition of Past Misconduct
- Michael T
- Jun 16
- 3 min read
Unlawful allocation of oil blocks by the Government of Liberia, through the President, to the National Oil Company of Liberia (NOCAL) is a direct violation of the Amended Petroleum Law of 2019 and the procedures set forth to ensure transparency, accountability, and institutional checks in the oil and gas sector. Under the current law, petroleum rights may only be awarded through a competitive bidding process, direct negotiations, or executive allocation (EA). In all cases, these processes must be undertaken with either the explicit approval of the Legislature or the formal consent of the relevant Hydrocarbon Committees of the Liberian Senate and House of Representatives. This safeguard exists to ensure public oversight and prevent unilateral executive actions.
In the current situation, no legislative approval or endorsement by the Hydrocarbon Committees was obtained prior to the President’s allocation of the blocks to NOCAL. NOCAL has not demonstrated technical or financial capacity to operate any block, nor has it presented a qualified commercial partner. Any such partner must, by law, be pre-qualified by the Liberia Petroleum Regulatory Authority (LPRA)—a step that has not occurred. The allocation was made during an active international bid round, in which credible international oil companies had already expressed formal interest. The Executive’s action has effectively undermined the bid round and eroded investor confidence by introducing an opaque and extralegal process.
Reportedly, strong influences behind the President’s recent actions include Joseph Boakai Jr. (JoeJoe), Christopher Neyor, Walter McCarty, Jake Kabakollie, Prince Moye, et al. These individuals have reportedly engaged in discussions with Arthur Eze, as well as with senior executives of TotalEnergies, ExxonMobil, and Chevron, concerning oil block deals that appear to prioritize personal gain over national interest. Their involvement has raised serious concerns about conflicts of interest and the integrity of the allocation process.
Further compounding the concern are allegations that Arthur Eze—a figure historically associated with Liberia’s troubled 2013 Block 13 transaction—is heavily behind this move. After Liberia’s civil war, Eze paid a pittance—reportedly just $200,000 in fees—for three offshore blocks, only to sell them to Chevron for $250 million, pocketing a staggering $200 million profit.
Watchdog group Global Witness and others allege that these deals were greased by bribes to Liberian legislators, exploiting a country desperate for investment and vulnerable to exploitation. Eze’s business model—acquiring blocks cheaply, selling them at a high price, and investing little in local development—has drawn criticism across Africa. In Liberia, he reportedly still owes nearly $20 million in capital gains tax, and in Senegal, his recent attempts to secure new oil assets were rebuffed by the new government, wary of his record. This same Arthur Eze is reportedly being promoted by individuals close to the President, hence influencing the President to bypass required legal procedures.
This unfolding situation suggests a troubling attempt to reintroduce opaque dealings under the guise of national interest. It disregards both the intent and the letter of the 2019 Petroleum Law and calls into question the commitment of the Executive to transparent resource governance.
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Additional Sources
[PDF] "AN ACT TO AMEND CERTAIN PROVISIONS OF THE NEW ... https://faolex.fao.org/docs/pdf/lbr226699.pdf
Liberia: Citizens' 5% Benefit in Oil Revenues Still In Tact – Senate ... https://frontpageafricaonline.com/news/liberia-citizens-5-benefit-in-oil-revenues-still-in-tact-senate-judiciary-committee/
Who Is Trying to Influence Oil Block Bid for Nigerian Businessman ... https://liberianinvestigator.com/update/who-is-trying-to-influence-oil-block-bid-for-nigerian-businessman-eze/
Liberia: Nigerian Who flipped Oil Block He Bought for US200K for ... https://frontpageafricaonline.com/news/liberia-nigerian-who-flipped-oil-block-he-bought-for-us200k-for-us250m-resurfaces-in-new-bid/
Exxon purchase of Liberia's corruption-tainted Block 13 likely ... https://globalwitness.org/en/press-releases/exxon-purchase-of-liberias-corruption-tainted-block-13-likely-enriched-former-liberian-officials/
Global Witness accuses Exxon of pursuing Liberia oil block despite ... https://www.stabroeknews.com/2018/03/30/news/guyana/global-witness-accuses-exxon-of-pursuing-liberia-oil-block-despite-corruption-concerns/
Liberia's Oil & Gas Sector Poised for Growth as High-Level Talks ... https://oraclenewsdaily.com/2025/05/05/liberias-oil-gas-sector-poised-for-growth-as-high-level-talks-unveil-untapped-hydrocarbon-potential/
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