By: Andrew B Weah , 0770637216/0886429103, andrewbweah@gmail.com
IPNEWS: Senator Amara M. Konneh of Gbarpolu County has strongly criticized the Liberian Senate’s ratification of the Production Sharing Contract (PSC) between the Republic of Liberia and Oranto Petroleum, warning that the decision undermines legal standards, weakens Liberia’s negotiating position, and sends the wrong signal to serious investors in the petroleum sector.
In a detailed statement issued following the Senate’s decision, Senator Konneh disclosed that while he voted in favor of the Production Sharing Contract with TotalEnergies, he voted against the Oranto Petroleum agreement. Despite his opposition, both agreements were ratified by the Senate.
According to the Gbarpolu County Senator, the ratification of the Oranto deal represents a missed opportunity for Liberia to enforce higher standards in a sector that urgently requires credibility, discipline, and technical competence.
“By ratifying the Oranto agreement, the Senate joined the Executive in squandering a critical opportunity to uphold the standards that Liberia’s petroleum sector urgently needs,” Senator Konneh said.
Questions Over Oranto’s Technical Capacity
Senator Konneh raised serious concerns about the technical qualifications of Oranto Petroleum, stating that the Senate found no evidence that the company has successfully executed frontier-phase exploration activities anywhere.
Instead, he said, the Executive relied on a guarantee statement from Atlas Petroleum to cover Oranto’s obligations an approach he described as dangerous and inconsistent with best international practice.
He further challenged claims that Oranto has producing assets in Equatorial Guinea, noting that evidence presented to the Senate showed that Atlas Petroleum International not Oranto holds operating interests in a producing asset in that country. The Senator emphasized that Atlas and Oranto are separate entities with distinct operational roles.
“Approving petroleum rights without verified technical capacity sets a dangerous precedent,” he warned. “It signals that paper guarantees can replace proven competence and an operational track record.”
Diluted Signature Bonus Raises Red Flags
The Senator also expressed alarm over the restructuring of the mandatory US$15 million signature bonus tied to the four petroleum blocks. Under the ratified agreement, only US$5 million is payable within four months of ratification, while the remaining US$10 million is deferred over four years and linked to future milestones.
Senator Konneh argued that accepting installment payments for what should be an upfront obligation weakens Liberia’s leverage and encourages speculative behavior.
“By accepting a four-year payment plan for an obligation that should have been settled upfront, the Senate joined the Executive in weakening Liberia’s negotiating position,” he said.
Alleged Violation of Petroleum Law
Beyond financial concerns, Senator Konneh highlighted what he described as a clear violation of Liberia’s Petroleum Law. He pointed out that Section 21.1 of the law limits the exploration phase to a maximum of seven years, with extensions granted only upon fulfillment of earlier work commitments.
Contrary to this provision, the Oranto agreement grants a ten-year exploration period three years beyond what the law allows.
He noted that neighboring countries such as Ghana, Sierra Leone, and Nigeria strictly adhere to similar legal frameworks, and warned that deviations of this nature expose Liberia to legal and reputational risks.
Incentivizing Speculation Over Development
Senator Konneh cautioned that the agreement reopens Liberia’s petroleum basin to underqualified companies whose business model focuses on acquiring, holding, and flipping blocks rather than investing in exploration and development.
He stressed that the agreement offers no meaningful safeguards against such practices and instead incentivizes them by accepting what he termed a “mediocre share” of proceeds when blocks are flipped.
“That is not a safeguard; it is an incentive,” he said.
Call for Discipline and National Interest
Despite his strong opposition to the Oranto agreement, Senator Konneh clarified that he is not against investment, exploration, or partnerships in the petroleum sector. Rather, he emphasized the need for strict adherence to the law, best practices, and the national interest.
“Liberia needs investment, exploration, and partnership urgently,” he stated. “But we must pursue them within the law, with discipline, and with a clear commitment to the national interest over short-term pecuniary considerations.”
Invoking a broader lesson for national development, Senator Konneh urged Liberia to learn from past mistakes and reject practices that hinder long-term growth.
“History will judge us not by how quickly we approved agreements, but by the standards we upheld when the future of Liberia’s petroleum sector was being shaped,” he concluded. “I voted no to Oranto Petroleum because Liberia can, and must, do better.”
