ExxonMobil Quits Oil Exploration Off Liberia’s Coast

Philadelphia, PA USA –

Oil exploration off Liberia has experienced a major setback with the announcement on Monday by the global oil giant ExxonMobil that it is quitting a block off the small West African nation.

File photo of the Exxon Mobil refinery in Baytown, Texas
File Photo of Exxon Mobil

The prospect and investment were seen as a potential economic boon for Liberia and profitable investment for ExxonMobil a year ago, if exploration yielded commercially viable oil.

Oil Block LB-13
Oil Block LB-13-

According to the global gas an oil news source Upstream, “Partner Canadian Overseas Petroleum revealed on Monday that the pair have let go of LB-13 after both companies “elected not to enter into the third exploration phase” at the tract.”

ExxonMobil is taking a loss of $15.6 million in exploration and evaluation expenses and says it intends to inform Liberian authorities over its decision to quit further exploration. The technical team of ExxonMobil, however said, it saw “opportunities in other areas of the block and continued “to perform geological and geophysical analysis in these areas.” This reservoir has potential quality.

According to an article written in 1994 by A. Hallam, An Outline of Phanerozoic Biogeography, “…The Late Cretaceous is often regarded primarily as a time of biotic retractions that culminated in the spectacular mass extinction at the end of the Cretaceous, but it was also a time of major evolutionary radiations in both the marine and terrestrial realms when many modern faunas and floras first became established. This mostly shallow-water, clastic sequence is, in places, very fossiliferous. 

First signs of trouble in its oil prospecting was the delay by ExxonMobil in 2014 when it curtailed exploration and drilling of the Mesurado-1well in Liberia due to the Ebola pandemic which heavily impacted the countries in the Mano River basin.

Map of Liberia
Map of Liberia

Liberia’s economy which needs a major boost and offshore capital will be further pressured with this major loss of a ExxonMobil’s investment for oil.

According to an economic overview report of Liberia by the World Bank, “…Headline inflation averaged 12.4% in the first half of 2017, compared with 7.3% the previous year, driven by the relatively fast pace of the depreciation of the Liberian dollar against the U.S. dollar (of 20% in the first half of 2017 compared to 11% in the same period in 2016). Other factors include excess liquidity in terms of Liberian dollars, and the relative shortage of inflows of foreign exchange. The resultant rise in the cost of living, especially the cost of food, which is mostly imported, increased fiscal pressures. Limited employment continues to undermine the welfare of Liberians in both urban and rural areas.” 

Political transition in Liberia is at an impasse due to a challenge of the October 10th Presidential election.

By Emmanuel Abalo

West African Journal Magazine

 

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West African Journal Magazine

The West African Journal was a major magazine publication in the United States with a focus on the Mano River region and West Africa sub-region during the civil crises in Liberia and neighboring countries during the decades of the 1990s. This was the period when many citizens and others in the sub-region were fleeing their homeland due to conflicts, and the magazine was a reliable source of information covering developments in the region and in the Diaspora.  However, the magazine suspended publication several years ago but is now back. It is, therefore, delightful that The West African Journal has been reactivated. The print edition of the magazine, to be published monthly and distributed in the United States, West Africa, and other parts of the world, will provide analysis of the major events of the period under review. Due to challenges relating to availability of reading materials in the sub-region, a few hundred copies of every edition of the magazine will be distributed free of charge to libraries and reading rooms at schools and institutions of higher learning in the sub-West Africa sub-region. The Journal covers government/politics, economics/international trade/investment and partnerships, women's issues, showcase of tourism and historic attractions in West Africa in particular, and Africa in general, as well as cover the Diaspora, entrepreneurship, among others. The Journal also taps into growing interest in the Unites States regarding resource-rich Africa as the next frontier for global economic progress amid an increasing global competition for access to the continent’s abundant natural resources. The magazine will regularly cover bilateral and multilateral partnerships between the US/multinational agencies and Africa/individual African countries. More importantly, in considering the danger of Climate Change and Global Warming, The Journal serves as a strong and unrelenting advocate to create international awareness regarding Climate Change, especially how West African countries and the African Continent as a whole are being negatively impacted. Through its environmental coverage, The Journal promotes education and awareness for people to be empowered. Our experienced team of editors, reporters and feature writers are excited to bring the stories that impact politics, finance, economy, arts, health, education, climate change, women and youth issues in Africa today. Contact The West African Journal is registered and published in Washington, D.C., U.S.A. Plans are underway to open a bureau office in Liberia, from which operations in other West African countries will be coordinated. Our journalists, who bring decades of high engagement of news and reportage, include former BBC veteran correspondent Isaac D.E. Bantu, former Daily Observer Features Editor and publisher of the West African Journal Joe S. Kappia, and Pana Press Editor Tepitapia K. Sannah, and respected Photo journalist and editor Gregory Stemn. These experienced and internationally-respected journalists ensure a high standard of professional journalism. Information and inquiries for The West African Journal should be directed to the following: Editor-in-Chief; Email: WestAfricanJournalMagazine@gmail.com Isaac D.E. Bantu: Publishing Partner; Email: WestAfricanJournalMagazine@gmail.com Mailing Address: P.O. Box 55053, Washington, D.C. 20040-5053 USA Thank you. Managing Editor