Liberia’s Government Approves Oil Exploration Deal With Chevron

Liberia’s parliament approved an offshore oil exploration accord with California-based Chevron Corp., the National Oil Company of Liberia said today.

Chevron will hold a 70 percent stake in each of three concessions, with Nigeria’s Oranto Petroleum Ltd. owning the other 30 percent, Fodee Kromah, head of National Oil, told reporters in the capital, Monrovia, today. The approval comes five days after the government endorsed the agreement.

“This three-year exploration project is expected to begin in the fourth quarter of 2010 and has a potential worth of US$10 billion,” the U.S. embassy in Monrovia said yesterday in a statement.

Liberia is rebuilding its economy after a civil war between 1989 and 2003 in which an estimated 250,000 people died and most of the country’s infrastructure was destroyed.

To contact the reporter on this story: Ansu Konneh in Monrovia via Johannesburg at pmrichardson@bloomberg.net.

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