The leadership of the Liberian Senate has reached a negotiated settlement with authorities of the National Oil Company of Liberia and Petroleum Regulatory Authority after the entities were engulfed in confusion over statutory powers and functions.
The resolution came after the Senate summoned both institutions to address concerns raised in a communication submitted by Senators Amara M. Konneh and Jonathan Boye Charles Sogbie, who warned that an ongoing dispute over regulatory authority could undermine investor confidence and weaken governance within the country’s emerging hydrocarbon industry.
Senate mediators successfully persuaded both entities to set aside their differences in the broader interest of maintaining a level playing field for investors and ensuring the smooth operation of the petroleum sector, Sources familiar with the discussion said.
According to the sources, the parties agreed to move forward cooperatively following the committee’s intervention, effectively ending a disagreement that had sparked concerns among lawmakers and industry observers.
At the center of the dispute were reports that NOCAL had entered into agreements with foreign firms GeoPartners and Searcher to conduct petroleum reconnaissance activities in Liberia without first obtaining licenses from the LPRA.
The controversy prompted Senators Konneh and Sogbie to seek legislative action, arguing that such activities, if verified, could violate provisions of the Petroleum (Exploration and Production) Act of 2014.
The lawmakers pointed to Section 11.1 of the Petroleum Law, which stipulates that any company intending to conduct reconnaissance surveys within a designated petroleum area must first secure a license from the LPRA and pay the prescribed fees.
The legislation established a clear separation of responsibilities within Liberia’s hydrocarbon sector, designating NOCAL as a commercial state-owned enterprise while assigning the LPRA exclusive responsibility for regulating upstream petroleum activities, including the oversight of NOCAL’s operations.
“This governance architecture was designed to enforce accountability, prevent conflicts of interest, and align Liberia’s legal framework with international best practices,” the senators stated in their communication to Senate President Pro Tempore Nyonblee Karnga-Lawrence.
The senators expressed concern that allowing any ambiguity over regulatory authority could weaken the rule of law within the petroleum industry and create uncertainty for potential investors evaluating opportunities in Liberia.
To address the matter, the lawmakers requested that key government officials and stakeholders be brought before the Senate to clarify the legal boundaries governing petroleum reconnaissance activities and the respective mandates of NOCAL and the LPRA.
Those who attended the meeting included the Minister of Justice, the Deputy Minister of Energy, the Director-General of the LPRA, the President and Chief Executive Officer of NOCAL, and the chairpersons of both boards.
The senators also sought answers regarding whether the activities being undertaken by GeoPartners and Searcher legally constituted petroleum reconnaissance operations, whether the firms were required to obtain LPRA licenses, and whether any such licenses had been issued.
Additionally, they called for discussions on possible structural and legislative reforms to prevent future institutional conflicts within the petroleum sector.
As part of their request for oversight, the lawmakers had also urged the Senate to require NOCAL to submit copies of its agreements with the foreign companies and to suspend all related activities pending legislative review.
The outcome of the meeting included several key agreements: both parties will proceed with their activities, including reconnaissance and licensing; the Minister of Justice will convene a meeting with both board chairs to foster a harmonious relationship between the parties; the LPRA will continue to issue licenses; and the legislature will review the laws and address overlapping issues. Following the Senate leadership’s intervention, attention is expected to shift toward strengthening regulatory coordination and ensuring that Liberia’s petroleum governance framework remains transparent, predictable, and attractive to investors.
