Liberia terminates African Petroleum PSCs

Liberia’s government has decided not to extend African Petroleum’s production sharing contracts for offshore blocks LB-08 and LB-09.

Offshore staff

LONDON-- Liberia’s government has decided not to extend African Petroleum’s production sharing contracts (PSC) for offshore blocks LB-08 and LB-09.

Both PSCs formally expired in June. The company has been in discussions with the authorities on amendments to the terms andextensions, in the hope of gaining more time to attract an industry partner to share the cost of work commitments.

However, this has proved difficult due to current market conditions for exploration activity and thelack of commercial discoveries to date in Liberia.

The company points out that it played a major role in helping to progress the industry in the country through the successful drilling of three exploration wells, including a non-commercial discovery at Narina-1.

11/28/2016

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