Liberia Oil Block 13 Set to Seal This Week: Exxon Mobil, COPL in NY to Wrap Pact Written by FPA Staff Report Sunday, 31 March 2013 22:00
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Once the discussions in New York are finalized this week, working interests in the block will be turned over to ExxonMobil as the key operator. As part of the deal, USD 50 Million will be received immediately upon ratification and printing into handbills includes USD21.25 Million, one of the highest Liberia oil block signature bonus yet.
“This amount of USD21.25 Million is also the largest ever upfront payouts to a non-producing country in the world. Up until now, it may interest you to know that the largest signature bonus Liberia has received for a single offshore oil block is USD3.33 Million The rest of the USD50 million is paid for taxes and transfer fees,” according to Randolph McClain, Chief Executive Officer of NOCAL.
Liberia’s negotiating team has also secured a 5% Citizen Participation Share in LB-13. “Simply put, if exploration and development in LB-13 are successful, revenues would be available to share with citizens. This will be at no cost to the citizens, NOCAL or to the Government of Liberia, after ExxonMobil and COPL have recovered their exploration, development and production costs the share could generate dividends to the citizens from the oil production. This is real profit for the people of Liberia.”