Senate Forces Clarity in Oil Sector as NOCAL Backs Down in License Dispute

Liberia’s Senate has stepped in to settle a high-stakes dispute in the country’s petroleum sector, compelling the National Oil Company of Liberia (NOCAL) to recognize the regulatory authority of the Liberia Petroleum Regulatory Authority (LPRA).

The resolution follows a Senate-led intervention that brought together key stakeholders, including the Ministry of Justice, LPRA, and NOCAL leadership. At the center of the dispute was the question of who holds the legal authority to issue petroleum reconnaissance licenses.

As part of the agreement, NOCAL and its partners—GeoPartners Limited and Searcher Geodata UK Ltd—have committed to formally applying to the LPRA for the required licenses before conducting any reconnaissance activities.

The conflict arose after NOCAL entered into agreements with the two foreign companies to begin petroleum-related work without first securing approval from the LPRA. Civil society group Liberia Early Warning Watch challenged the move, arguing that the activities fall squarely under reconnaissance operations, which legally require LPRA authorization under the 2014 Petroleum Reform Law.

During the Senate-mediated discussions, it was reaffirmed that LPRA is the sole institution mandated to issue such licenses, while NOCAL’s role is limited to administrative functions when it is not directly involved in the agreements.

The Ministry of Justice also used the opportunity to recommend revisions to the petroleum law, aiming to eliminate ambiguity and prevent future institutional conflicts. The Senate endorsed the proposal, stressing that clearer legal language is essential for effective governance.

Lawmakers further emphasized the importance of maintaining a clear distinction between regulatory and commercial roles within the oil sector, noting that such separation aligns with international best practices and helps build investor confidence.

Senator Amara Konneh, who helped bring the issue before the Senate alongside Senator Sogbie, described the outcome as a necessary step toward strengthening governance in the sector. He clarified that the intervention was not politically motivated but intended to ensure transparency and attract credible investment.

With the dispute now resolved, the decision is expected to restore clarity, reinforce regulatory oversight, and position Liberia’s petroleum sector for more structured and investor-friendly growth.

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