LiberiaLiberia Plans Oil Logistics Base
Liberia plans to build an offshore oil logistics base in Buchanan to handle future drilling support domestically. Nigerian group LADOL will finance and conduct the feasibility study.
Global Newsflix 2 min read
Liberia's state-owned National Oil Company of Liberia, NOCAL, has signed a joint development agreement with Nigerian group Lagos Deep Offshore Logistics Base, LADOL, to develop an offshore oil logistics base in Buchanan.
The planned 83.6-hectare facility will serve as an onshore support base for offshore operations, providing logistics, transportation, supply services and storage for oil activities at sea.
LADOL will finance and conduct the feasibility study, which is expected to begin within 45 days and last six months, assessing land availability, marine access, utilities, commercial viability and soil conditions.
NOCAL said it had secured two sites near the port of Buchanan for the project, which aims to strengthen Liberia's domestic logistics capacity for offshore drilling.
The project comes as offshore exploration activity has increased in Liberia, with companies such as TotalEnergies, Atlas/Oranto and BluEnergies expanding their activity in Liberian waters.
In 2016, some logistics support for drilling operations came from neighboring countries, including Côte d'Ivoire, Ghana and Senegal.
The agreement between NOCAL and LADOL covers the construction of the logistics base, but the two sides still need to negotiate definitive agreements covering the construction and operation of the base.
Key facts
- Liberia plans to build an offshore oil logistics base in Buchanan
- Nigerian group LADOL will finance and conduct the feasibility study
- The planned facility will cover 83.6 hectares
- The project aims to strengthen Liberia's domestic logistics capacity for offshore drilling
Three perspectives
Neutral
The development of the offshore oil logistics base in Buchanan is expected to support Liberia's growing oil industry. The project's success will depend on the outcome of the feasibility study and the negotiation of definitive agreements. The increase in offshore exploration activity in Liberia is likely to continue.
Positive
The construction of the logistics base will create new opportunities for Liberia's economy and support the growth of the country's oil industry. The partnership between NOCAL and LADOL is a significant step forward for the project. The base will provide jobs and stimulate local economic activity.
Negative
The project's reliance on a foreign company, LADOL, may raise concerns about Liberia's ability to develop its own logistics capacity. The feasibility study may identify significant challenges to the project's viability. The increase in offshore exploration activity may also raise environmental concerns.
Your week in news, every Wednesday
The biggest stories of the week for your edition, in your inbox every Wednesday morning, your time. Free, and you can unsubscribe at any time.
