12/12/2025
Representative Sumo Mulbah Responds to Criticism On Oranto Petroleum Agreement👇👇👇👇
At first, I considered not replying and letting things be, but it's crucial to communicate with our people.
I often repeat this and will repeat it: I entered the public sector to foster change and enhance the lives of our citizens. Coming from an impoverished background, not an elite family, I understand the struggles our people face daily. I also recognize the emotional hope everyone holds for a better Liberia. Achieving a better Liberia depends on encouraging more investment, free from personal interests and biases.
The real challenge for Liberia isn't just attracting investment but managing it effectively, while ensuring security and benefits for all citizens. However, let me dispel those myths from the perspective of a member of civil society.
Many Liberians have contributed to impeding the country's progress, partly because they lack positions in government. For instance, Mr. Matthew Sieh Wisseh claimed that Liberia's setbacks are linked to legislative decisions and alleged that hearings of public institutions were staged, which is a false report on social media.
While it's beneficial for civil society groups to participate in decision-making, they should also raise issues affecting society, such as r**e, the death of innocent Liberians, and unemployment. Often, this group remains silent unless there's a financial issue in a decision impacting the nation.
Civil society should expand its role beyond profit-making to focus more on people’s concerns. Nonetheless, I will address the myth as a member of that committee.
Mr. Matthew Sieh Wisseh, reconsider your use of 'retrogression' as your promoted ideology has been thoroughly discredited.
As a member of civil society, you had the chance to submit supporting documents for your claims about a PSC agreement.
Although you provided some documents, I specifically asked if, based on online news and personal opinions, you had any evidence from the cited countries or official government websites.
You did not supply any. Additionally, you failed to produce any public evidence to support your claims, and your online sources were neither clear nor verified by the countries mentioned.
Relying on internet stories to impede our nation's progress is like acting as a pay surrogate, and I refuse to participate.
Remember, using internet opinions as factual evidence in a specific national case is generally unadvisable due to issues of authenticity, reliability, and potential misinterpretation. While social media and online content are widespread, we approached such sources cautiously, requiring thorough verification, but found them insufficient to establish facts without corroborating evidence from official government sources.
Here's a breakdown of why major internet opinions were problematic as factual evidence:
Authenticity and Attribution Challenges
Reliability and Contextual Issues
Hearsay and Evidentiary Rules
The primary concern with the PSCs, according to evidence from government, civil society, and our investigations, is the framework meant to protect our nation's interests regarding percentages, security, and benefits.
Past contracts from 2007 lacked clarity, ensuring that Liberians, as resource owners, did not benefit.
The proposed improvements include several strong clauses to prevent contractors from engaging in irregular activities, benefiting all parties involved.
The current administration's approach to the Oranto Petroleum contract aims to be more secure than the 2007 version by increasing scrutiny, involving legislation, and enhancing transparency and accountability, especially within the context of Production Sharing Contracts (PSCs) and the overall regulatory framework.
With the security and management frameworks outlined in the government's proposed rectification framework for the New PSCs agreement, we can reassure citizens that their future is secure. We hope the income generated will benefit our people.
Our role was to advise Plenary on whether the agreement was suitable for rectification. We diligently gathered information from both local and international sources, including countries with similar cases.
However, exploration does not mean Liberia is extracting oil; it only involves searching for oil, and there is no confirmation that Liberia has any oil reserves.
Since Oranto is your main concern, let's focus on the benefits to our country over emotions. Oranto finances its own seismic surveys, geological research, subsurface analysis, and early exploration, which are the riskiest parts of the oil industry. Liberia does not pay for these exploration costs, so there is no financial risk to the national budget. In return, the government gains from:
Why the Oranto Deal Benefits Liberia
The exploration phase incurs no costs to the government.
Oranto is covering the entire cost of exploration activities, safeguarding Liberia from financial risk and transferring all associated risk to the investor.
Modernizing Liberia’s Energy Sector
As many African countries progress in offshore exploration, Liberia needs to stay competitive.
This agreement reestablishes Liberia's presence on the regional energy scene after years of inactivity.
Strengthened Regional Credibility
Oranto’s established presence throughout Africa ensures that Liberia is partnering with a company that already has strong government relations, credibility, and operational expertise across various jurisdictions.
Job Creation and Local Participation
Even during the exploration phase, Liberian technicians, geologists, logistics companies, and service providers can benefit through both direct and indirect jobs.
High-Potential Long-Term Economic Benefits
If exploration confirms the presence of commercial oil reserves:
Liberia will negotiate production agreements
Job creation will multiply
Revenue streams (royalties, taxes, profit sharing) will significantly increase national income
New infrastructure investments will emerge
Thus, the current phase is the critical first step toward unlocking a potential new pillar of Liberia’s economy.
Fiscal Benefits for Oranto
400K to authority (LPRA) in signature and production bonuses
850K to consolidated funds – (120days upon rectification)
1.25 million to the consolidated funds upon acquisition of new seismic data
1.25 million to the authority (LPRA) on the approval of the first exploration well
10 million will be transferred to the consolidated fund when the combined total production of crude oil from all exploitation areas within the contract area first reaches an average rate of 30,000 barrels per day over 90 consecutive days
15 million will be transferred to the consolidated fund when the combined total oil production from all exploitation areas and the contract area first reaches an average of 50,000 barrels per day over a continuous 90-day period.
20 million will be added to the consolidated fund once the combined oil production from all exploitation areas and the contract area first reaches an average of 100,000 barrels per day over 90 consecutive days.
The contractor shall pay $500,000 in administrative fees to the Authority at the start of each contract year.
In conclusion, it is crucial to thoroughly explore the contract and identify what we all hope to achieve. If oil is discovered, we can put in place a more comprehensive agreement to secure a fair share of the extraction.
Once again, we thank the Liberian people for this opportunity to serve and make history. Our committee's perspective is based solely on expert analysis and professionalism.
