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In a strongly worded letter to the House of Representatives, several lawmakers have sounded the alarm over what they describe as a deeply flawed and suspicious oil deal between the Liberian government and Atlas Oranto Petroleum. The letter, signed by Cllr. Rep. Fonati Kotfa of Grand Kru County, District #2, and Musa Hassan Bility, Nimba County, District #7, and CMC Political Leader, was addressed to Sam P. Jallah, Chairman, Committee on Hydrocarbon, Foday Fahnbulleh, Chairman, Committee on Investment and Concessions, and Johnson Williams, Chairman, Committee on Judiciary, warn against ratifying the Atlas Oranto Production Sharing Agreement (PSA) recently submitted to the 55th Legislature. "Few moments in our sojourn as legislators will require us to stand up vigorously for the future of this country and the judgment of history. We are afraid one of those times is now,” the lawmakers wrote. “The Atlas Oranto (herein ‘Oranto’) Production Sharing Agreement… should not be ratified and should be returned to the Executive for reasons stated below." The legislators recalled that Oranto Petroleum’s record in Liberia is “marred by scandal and corruption. In 2007, the Nigerian-owned company was awarded oil blocks LB-11, LB-12, and LB-14, a process widely condemned for its “lack of transparency and integrity. The lawmakers noted that Oranto’s owners subsequently sold these blocks to the American Company Chevron, through a deal with a ‘straw man,’ without drilling a single well or making any investment in our land. The straw man in this case was the Canadian Overseas Petroleum Ltd (COPL). According to ProPublica, the original Oranto deal violated the U.S. Foreign Corrupt Practices Act (FCPA). Other investigative outlets, including Forbes, Global Witness, and FrontPage Africa, have documented how the company profited massively —over US$150 million —without contributing to Liberia’s development. The lawmakers emphasized that the latest deal was negotiated and signed in secret, lacking the competitive bidding process that would ensure fairness and value for the Liberian people. They raised a series of unanswered transparency questions, including Who are Oranto’s Liberian lawyers? Who were the consultants advising the Government on this deal? Who are Oranto’s local partners benefiting from the agreement? How was the 5% Liberian participation handled, and who are the beneficiaries? Did Deloitte and Touche conduct the pre-qualification process? Did Oranto purchase the seismic data and demonstrate access to US$3 billion as required? Why did the signing bonus drop from US$10 million to US$1.2 million? "These are all transparency questions that must be answered before the people's deputies can pass on this matter,” the letter reads. “So far, after two bid rounds, the Liberian petroleum industry has derived little or no benefit to the Liberian people. Instead, the Liberian oil industry is a network operating equivalent to a racketeering, influenced, and corrupt organization. The lawmakers did not mince words, asserting that the government’s decision to re-engage Oranto means that the government is part of the racketeering network or has chosen to play a blind eye to what is occurring. "As our people say in Liberia, ‘nobody stupid here.’ If it looks like corruption, quacks like corruption, and smells like corruption, it must be corruption,” they declared. The letter also challenges Oranto’s technical and financial capacity to conduct deepwater drilling, which can cost over US$200 million per well. "It is clear that Oranto does not have the capacity to perform the contract awarded to it. Oranto has no history, nor has it demonstrated a capacity for ultra-deep-water drilling,” the lawmakers stated. They contrasted Oranto with major oil companies like ExxonMobil, Chevron, Shell, TotalEnergies, BP, Eni, Equinor, Occidental, and Petrobras, which have proven expertise and capital for such operations. "Oranto has the ability to put together potential investors to flip oil blocks it contracted for and flip them over for an astronomical profit,” the lawmakers wrote. “ It adds no value on the blocks it contracts for and is simply a middleman for the disposal of those blocks." The legislators warned that the Oranto PSA represents a major policy decision with long-term implications for Liberia's petroleum future, one that must not be taken lightly. Liberia must not sacrifice transparency and national benefit for expedience or political convenience,” they cautioned. “Our obligations to the Liberian people are our highest duty and calling. To give out a significant public resource to a company with a scanty track record in Liberia and no capacity to perform the contract is nothing less than a dereliction of duty.” The lawmakers concluded by urging that their concerns be incorporated into the committee report and reiterated their readiness to appear before the House for further discussion.
