The upstream oil and gas sector in Liberia presents a significant potential for economic growth and prosperity. Positioned advantageously in the Equatorial Atlantic Margin, a region renowned for major global oil and gas discoveries, Liberia has the opportunity to emulate success stories like that of Guyana. Notably, Guyana, (also located in the Equatorial Atlantic Margin) through strategic partnerships with supermajors such as ExxonMobil and Hess, witnessed a remarkable 19.9% GDP growth in 2021, underscoring the transformative impact of effective governance in the sector. But Liberia Could Fumble This Opportunity
Liberia faces challenges in seizing similar opportunities, as evidenced by the delayed response to ExxonMobil’s application for offshore blocks 15, 16, 22, and 24 in April 2023. The lack of decisive action, compounded by key sector leadership appointments without requisite sector knowledge by the Weah led government, has led to infighting and missed opportunities. This was exacerbated by a steep learning curve required to run a complex sector and has resulted in a six-year hiatus and potential hundreds of millions of dollars in investments for the sector.
Appointments without the Guidance of the NOCAL Act
The recent appointment of Hon. Suakoko as the head of NOCAL, alongside two VPs, has raised concerns regarding adherence to the NOCAL Law of 2016. Sections 9 and 12 explicitly outlines such a process requiring that the President appoint the President/CEO and Board of Directors, with Senate consent. The VPs and others are vetted by the CEO and employed with Board approval. Regrettably, the recent appointments deviated from these provisions, with VPs receiving Presidential mandates. The two appointed VPs, it can be noted, have no prior oil & gas upstream sector experience, contrary to the requirements for competence in the law. The appointment committee as such simply glazed over sector professionals with years of experience.
First Strike that Could Lead to a Fumble
The oil and gas sector demands seasoned leadership, and the current appointments risk a loss, on day one, when key executives without experience sit across the table from industry-savvy investors, with decades under their belt. While the government has initiated steps to operationalize the sector, overlooking qualified individuals with substantial experience in favor of political recompense is alarming.
NOCAL Team Could be in Jeopardy
While some express satisfaction with Hon. Suakoko’s appointment, emphasizing her background in petroleum geoscience, there is a consensus that her success hinges on building a competent team. The former Lawmaker and geology instructor started her career as a junior geologist for African Petroleum (AP) and was part of the team that made the Narina-1 discovery, Liberia’s first. She received her Master’s in Petroleum Geoscience from University of Manchester while working with the AP team in its London office. With the departure of AP, Hon. Suakoko ran and won the Distric 4 Montserrado Representative but lost a referendum on her leadership of the District in the past 2023 general elections. During the campaign, she was a key ally and staunch supporter of President Boakai. But her potential could be derailed by a team that doesn’t have the experience to drive the operations and commercial endeavors at Nocal. The legal framework emphasizes the critical role of the Board of Directors and CEO in avoiding this by appointing a qualified team with sector-specific expertise.
Liberia Petroleum Regulatory Commission: Sheep Without a Shepherd
Furthermore, the absence of leadership at the LPRA, the sector regulator, raises concerns about attracting investments through bid rounds and negotiations. The government was keen to appoint at Nocal, but has failed address the leadership vacuum the key sector drive. The LPRA is also severely in need of capital to ensure the LPRA’s effectiveness, as it plays a pivotal role in regulating the sector and overseeing key negotiations in the future.
A Reconsideration of the Appointment in Line with Rule of Law
In light of these challenges, experts and stakeholders have call for a withdrawal of the recent appointments to adhere to the Rule of Law and the established vetting process outlined in the ARREST agenda. This entails the proper constitution of a qualified Board of Directors and CEO, followed by a rigorous selection process for a capable team. The government has in the past spent millions to train professionals in the sector. Many were driven out of the sector due to lack of opportunity. Their competence and experience in the sector must be honored, thus emphasizing a commitment by the Boakai Led government to place expertise over political considerations for sustainable long-term success of the nation. This will also ensure the current government’s commitment to the ARREST agenda for the prosperity of all Liberians.
