Liberia has taken a major step toward retaining more of the economic benefits of its emerging oil and gas industry, with the National Oil Company of Liberia (NOCAL) signing a Joint Development Agreement (JDA) with Nigeria’s Lagos Deep Offshore Logistics Base (LADOL) to advance plans for a major shorebase in Buchanan, Grand Bassa County.
By: Sampson W. Weah – sampsonwweah7@gmail.com
The agreement, signed in London on Sunday, establishes a framework for NOCAL and LADOL to jointly develop the proposed Buchanan Shorebase, which is expected to provide logistics and other critical support services for future offshore drilling operations.
The partnership comes in response to challenges exposed during Liberia’s previous drilling campaign, when much of the infrastructure and services required to support petroleum operations were sourced from outside the country.
According to NOCAL, essential services, including waste disposal, logistics, supply-chain management and specialized technical support, were obtained from neighboring countries such as Côte d’Ivoire, Ghana and Senegal. As a result, significant employment and business opportunities generated by Liberia’s drilling activities were captured outside the country.
The proposed Buchanan Shorebase is intended to change that situation as Liberia prepares for increased drilling under existing petroleum agreements and future concessions.
NOCAL President and Chief Executive Officer Fabian M. Lai said the partnership with LADOL is aimed at building the domestic capacity needed to support Liberia’s petroleum industry.
“We are determined to correct that narrative as we prepare for our next set of drilling programs,” Lai said.
“This partnership with LADOL is about more than just building a logistics hub for Liberia. It is about anchoring the value chain of our petroleum sector firmly in Liberian soil,” he added.
Lai said the objective is to ensure that more jobs, contracts, training opportunities and support services generated by petroleum operations are provided by Liberian companies and workers.
Under the agreement, LADOL will serve as NOCAL’s technical lead partner, supporting the development of the shorebase from feasibility studies and engineering through construction and eventual operations.
The initial feasibility study is expected to begin within 45 days and run for six months. It will assess land requirements, waterfront and marine access, utilities, commercial and operational viability, geotechnical and topographical conditions, as well as the scope of an Environmental and Social Impact Assessment.
Following the feasibility process, the two parties are expected to work toward definitive agreements governing the development and operation of the project.
LADOL Executive Chairman Sir Oladipo Ladi Jadesimi said the agreement demonstrates his company’s confidence in Liberia’s petroleum potential and its commitment to local-content development across West Africa.
“We are not just investors; we are partners in building a sustainable future for Liberia’s oil and gas industry,” Jadesimi said.
He said the proposed shorebase could help ensure that Liberian businesses and workers become primary beneficiaries of the country’s natural resources.
Founded in 2000, LADOL operates a major logistics and industrial facility in Lagos, Nigeria, supporting offshore oil and gas operations and related engineering activities.
NOCAL and LADOL will jointly oversee the development and eventual operation and maintenance of the Buchanan facility, with LADOL providing technical and operational expertise.
The JDA also establishes a Joint Steering Committee to oversee the project’s progress and includes confidentiality and non-circumvention provisions to protect the partnership.
The proposed Buchanan Shorebase could become a critical piece of infrastructure for Liberia’s petroleum ambitions. Beyond serving as a base for offshore operations, the facility could play an important role in determining how much of the economic activity generated by future drilling remains within Liberia.
For years, Liberia’s limited petroleum-support infrastructure has required companies operating in the sector to rely heavily on facilities and services in neighboring countries.
However, the Buchanan project remains at the development stage, with the feasibility study and subsequent definitive agreements expected to determine the path toward construction and eventual operations.
If successfully developed, the Buchanan Shorebase could position Liberia to capture a larger share of the jobs, contracts, services and investment generated by its offshore petroleum industry.
