Announcement of Liberia Receives Five Million Dollars World Bank Loan for Promotion of Petroleum Exploration on October 9, 1980

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/19 October 9, 1980 LIBERIA RECEIVES $5 MILLION WORLD BANK LOAN FOR PROMOTION OF PETROLEUM EXPLORATION The World Bank has approved a $5 million loan to Liberia for a project to help promote petroleum exploration. Under the project, a new seismic survey will be undertaken of 2,500 kilometers of Liberia's offshore land where prospects appear 1 ikely. The data obtained will be computer-processed, interpreted, and integrated with available data. Assistance will be provided to government for the promotion, auctioning, and negotiation of bids and permits wlth oil companies which might engage in offshore explora- • ation. The Bureau of Hydrocarbons in the Ministry of Lands and Mines will be provided technical assistance for energy planning, training, and equipment. Liberia currently imports all its requirements in crude oil and some oil products. Its annual consumption of oil products has been increasing by approximately 3.5% a year. This project is expected to help attract greater interest on the part of oil companies to explore for petroleum. The $5 million World Bank loan to Liberia is for 20 years, in- cluding five years of grace, with interest at 9.25% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO, 1121 (5-76) T E C HN I CA L DA T A PROJECT: Petroleum Exploration Promot·on COUNTRY: Liberia TOTAL COST: $6 mi 11 ion BANK FINANCING: $5 mill ion for a term of 20 years, including five years of grace, with interest at 9.25% per annum OTHER FINANCING: Government of Liberia, $1 mill ion IMPLEMENTING ORGANIZATION: Bureau of Hydrocarbons Ministry of Lands and Mines Monrovia, Liberia PROJECT DESCRIPTION: It consists of: (a) a new seismic survey of Liberia's off- shore, the computer processing, interpretation and integra- tion of the new data; (b) consulting services for the promotion, auctioning, and nego- tiation of new exploration permits; (c) technical assistance for energy planning; and • (d) technical assistance to the Bureau of Hydrocarbons of the Ministry of Lands and Mines. PROCUREMENT: The contract for the seismic survey wi 11 be awarded following international competitive bidding in accordance with World Bank procurement guidelines. Equipment for the 1 ibrary and supporting services (about $100,000) will be procured in accordance with local procedures satisfactory to the Bank. For computer processing, quotations wi 11 be obtained from several firms. Such contracts will be relatively small, as it is expected that two or three firms will actually perform the reprocessing. CONSULTANTS: The fol lowing wi 11 be needed: 6 man-months for the supervision of the seismic survey (including data processing); 34 man- months for the interpretation of the data and the preparation of reports; 16 man-months for the preparation, auction, and negotiation of offshore permits; and 58 man-months for the technical assistance component. In v·iew of the technical complexity of the project and the large number of experts required, it is proposed to employ a petroleum consulting firm to help with project implementation. The government will secure the services of a law firm to review, in collaboration with the petroleum consulting firm, the petroleum code, orep~rc model contracts and, as necessary, assist in negotiations with oil companies . • ESTIMATED COMPLETION DATE: 1983 - 0 -