Liberia+Petroleum+and+Natural+Gas

=Chinese Companies Are Unlikely To Make Significant Investments Into Liberian Petroleum In The Next Five Years=

Executive Summary:
It is unlikely that China will invest any significant amount into Liberian based petroleum projects within the next 5 years. Liberia currently produces no petroleum products. However, in 2012, large oil deposits were discovered off their coast. The oil deposits still need to be evaluated in terms of whether or not they are viable for commercial production. This is estimated to take 5 to 7 years. Exploratory contracts have been signed by the National Oil Company of Liberia (NOCAL) with ExxonMobil and Canadian Overseas Petroleum Ltd granting them partial rights to the oil deposits.

Discussion:
Liberia currently produces no petroleum products. Their petroleum needs are met solely through importation. In 2012, exploratory wells drilled by National Oil Company of Liberia (NACOL) showed potentially large oil deposits off the Liberian Coast. Two wells, designated Bee Eater-1 and Narina 1, have both discovered large oil deposits in the area called Block LB-09. These oil deposits are still in need of further evaluation. It needs to be determined whether or not they are viable for commercial production. The oil deposit found by Narina 1 is expected to take 5 to 7 years to be fully evaluated. As of yet, China has not become involved in the initial stages of these discoveries. ExxonMobil and Canadian Overseas Petroleum Ltd have signed contracts with NACOL for partial rights to the Narina 1 oil deposits.

Analytic Confidence:
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method, worked alone, and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst****:** Jared DeTal