Liberia, located in West Africa, has significant potential for oil production due to its proximity to the oil-rich Gulf of Guinea. The country has been actively exploring its offshore blocks for oil reserves.

▪️ExxonMobil’s interest in Liberia

ExxonMobil has expressed interest in exploring and producing oil in Liberia’s offshore blocks. In March 2021, the company applied for four offshore blocks in Liberia, namely LB13, LB14, LB15, and LB16. The blocks cover an area of around 9,600 square kilometers, and ExxonMobil plans to conduct a seismic survey to assess their potential for oil and gas reserves.

▪️Рrevious attempts to explore in Liberia

ExxonMobil had previously applied for offshore blocks in Liberia in 2013, but the government did not approve its applications due to concerns over the company’s environmental and social practices. However, in 2021, ExxonMobil has taken steps to address these concerns and has promised to adhere to international best practices in its exploration and production activities.

▪️Return to West Africa

ExxonMobil’s renewed interest in Liberia is part of the company’s larger strategy to expand its exploration activities in West Africa. In 2020, the company signed a production-sharing agreement with the government of Ghana to explore oil and gas reserves in the Deepwater Cape Three Points block. The company has also expressed interest in exploring offshore blocks in neighboring countries such as Ivory Coast and Senegal.

▪️Other African projects of ExxonMobil

Mozambique: In 2019, ExxonMobil acquired a 25% stake in a liquefied natural gas (LNG) project in Mozambique. The project is expected to produce up to 15.2 million tons of LNG per year and generate significant revenue for the government.

Angola: ExxonMobil has been exploring for oil and gas reserves in Angola since the 1990s. In 2018, the company announced a major offshore discovery in the country’s Block 15/06, which is estimated to contain between 500 million and 1 billion barrels of oil equivalent.

Nigeria: ExxonMobil has been operating in Nigeria for over 60 years and is one of the country’s largest oil and gas producers. In 2019, the company announced a major offshore discovery in Nigeria’s Owowo field, which is estimated to contain between 500 million and 1 billion barrels of oil equivalent.

Equatorial Guinea: In 2018, ExxonMobil signed an agreement with the government of Equatorial Guinea to explore for oil and gas reserves in the country’s Block EG-11. The company plans to conduct seismic surveys and exploratory drilling in the block in the coming years.

▪️Why ExxonMobil moved to such a risky project like Liberia now?

ExxonMobil, the US-based multinational oil and gas corporation, recorded an operating revenue of approximately $413.7 billion in 2022, solidifying its position as one of the largest companies worldwide in terms of revenue. With such significant financial resources, the company may have the opportunity to invest in projects that were not previously considered.

The reasons behind ExxonMobil’s interest in the Liberian oil projects are not entirely clear. The government claims the existence of approximately one billion barrels of oil reserves in the region, but there has not been a clear assessment of these reserves. Furthermore, the region lacks infrastructure, making it necessary to import nearly everything, and there is a risk of piracy. Despite these challenges, ExxonMobil’s significant profits may allow the company to pursue this venture. However, neighboring African countries may not be welcoming of American oil workers.