1. Welcome to NOCAL NATIONAL OIL COMPANY OF LIBERIA PRESENTATION BY
J. S. SANDIKIE B.Sc., M.E.R.
V.P. for Technical Services
Good morning everyone.
Thank you for attending CNOOC Board of Directors meeting.

2. General Introduction to the Liberia Petroleum Exploration Program

3. Brief History of the Oil Exploration Program In Liberia
 Petroleum Exploration began in 1948 in Liberia and stopped in 1972 for some years.
In 1980, the Government of Liberia (GOL) reactivated the project, through a US$5.0 Million World Bank loan to finance the project, aimed at evaluating the hydrocarbon potentials of the Liberian sedimentary basins.
AMOCO Liberia Exploration Company was awarded four (4) offshore permits in 1983 for petroleum exploration. AMOCO shot an extensive seismic survey and drilled three (3) exploratory wells offshore during 1983 and 1984.

4. Oil and Gas Exploration Wells Drilled
Seven (7) exploratory wells have so far been drilled on the continental shelf of Liberia. See Map next:

5. Map of Oil and Gas Exploration Wells Drilled

6. The Old Block Map (A-H) Note the Isobars 200m – 3,000m

7. ONSHORE SEDIMENTARY BASINS
The Onshore area of Liberia consists mostly of Igneous and Metamorphic Rocks.
Information gathered from outcrop and gravity survey show that there are two Coastal Basins in Liberia known as Roberts Basin and Bassa Basin respectively.
The Sediments from these Basins range from Paleozoic (?) to Recent, and lie on the Pan-African age Basement, filled with sediments ranging from few feet to much 10,000 feet in thickness.
To date, no well has been drilled onshore and detailed sedimentary sections are not known.
NOCAL

8. MAP OF ONSHORE GEOLOGY

9. WELL CORRELATION DIAGRAM
The next diagram shows the stratigraphy of the wells including two wells offshore Sierra Leone. The horizons of oil prone source rocks are shown by the green bars along the side of the well stratigraphy.
Similarly, Horizons with mixed oil and gas prone source rocks are indicated by the green/red bars.
The Major Lithologies are colored as follows:
Blue - limestone
Yellow - sandstone
Green - shale
Brown - volcaniclastic sediments
Red - igneous lavas/intrusions

10. WELL CORRELATION DIAGRAM
NOCAL

11. SOURCE ROCK
4 wells had Early to Middle Albian oil-prone source beds with TOC’s from 1.9% to 5%
1 well had Aptian oil-prone source beds with TOC’s from 1.0% to 3.0%

12. TRAP TYPES Tilted Fault Blocks Onlap Pinchouts Deepwater Fans
Truncation Traps
Transpressional Structures
Structural – Stratigraphic combinations

13. RESULTS OF THE STUDIES
Seismic and well data collected from Liberia’s Offshore have identified
Oil Shows,
Good Reservoirs,
Source Rocks in the wells drilled,
Abundant reservoir quality sandstones,
Adequate seals,
Varied and abundant trap types and sizes,
Maturation is estimated to be after the cessation of tectonism
Other seismic data and regional analysis show Sedimentary features and structural traps identical to those in the other West African Countries with have proven mature source rocks containing oil and/or gas.
These factors are very similar to those of adjacent Côte d’Ivoire and other producing sectors of offshore West Africa

14. NATIONAL OIL COMPANY OF LIBERIA (NOCAL)
TGS-NOPEC geophysical survey
In 2000 TGS-NOPEC conducted a 9,500 kilometres 2D geophysical survey, comprising seismic, marine gravity and marine magnetic data, in water depths ranging from 500 to metres. All wells were tied by the survey.

15. TGS-NOPEC CONTRACTED THIS VESSEL IN 2000 FOR 2D SEISMIC FOR NOCAL
NAN HI 502
Client: NOCAL；
Field: Offshore Liberia
Operation: 2D Seismic Acquisition
Km of Seismic Lines: 9,500km

16. SOME SCENES ON BOARD THE SEISMIC VESSEL
WITH LIFE JACKET
GRAVITY RECORGING ENGINEER
ON THE CABLE PLATFORM
SEISMIC RECORDING COMPUTERS
QUALITY CONTROL GEOPHYSICIST
SEISMIC SHOT CONTROL & RECORDING

18. THE MAJOR OFFSHORE BASINS IDENTIFIED IN LIBERIA
Two major basins identified are the Liberia Basin and the Harper Basin separated by a broad arch, known as the Liberia High.
The Offshore Liberia basin complex is bounded on the Northwest by the Sierra Leone Transform System and on the Southeast by the St. Paul Transform System.
The total thickness of the Aptian – Tertiary sedimentary section ranges from 4,500 m. to 5,000 m on the shelf, to approximately 9,000 m in the basin depocenters

19. MAP of THE MAJOR OFFSHORE BASINS IDENTIFIED IN LIBERIA

20. PRODUCTION SHARING AGREEMENTS
NOCAL presently has Production Sharing Contracts with the following five (5) oil companies for eight (8) blocks:
THE FIRST SET OF PSC’S NEGOTIATED ARE:
 Repsol, a company operating under the laws of Spain, was awarded block number LB-17.
Oranto Petroleum Limited, a company operating under the laws of Nigeria, was awarded block number LB-12.
THE SECOND SET BY THE BIDDING PROCESS:
 Consortium of Regal Liberia Limited and European Hydrocarbon (subsidiaries of Regal Petroleum plc), a company registered under the laws of U.K Block LB-8 and Block LB-9;
Oranto, a Nigerian registered company, block LB-11;  
Broadway Hydrocarbon plc, a U.K. registered company, block LB-13;
Woodside, an Australian registered company, block LB-15; and
 Repsol, a company registered under the laws of Spain, block LB-16.

21. BLOCKS AWARDED AS OF 2005 REBSOL LR 17 REBSOL LR 16 WOODSIDE LR 15
REPSOL BLOCK LB-17
REPSOL BLOCK LB-16
ORANTO BLOCK LB-12
REBSOL LR 17
ORANTO BLOCK LB-11
REBSOL LR 16
WOODSIDE BLOCK LB-15
WOODSIDE LR 15
VACANT 14
BROADWAY LR 13
ORANTO LR 12
BROADWAY BLOCK LB-13
VACANT 10
ORANTO LR 11
REGAL & E.H. LR 9
VACANT 7
REGAL BLOCK LB-9
REGAL & E.H. LR 8
VACANT 7
VACANT 3
VACANT 6
VACANT 4
REGAL BLOCK LB-8
VACANT 5
VACANT 1
VACANT 2

22. STATUS OF THE CONTRACTS
Three of the above contracts (Oranto Blocks LB-11 & LB-12, and Broadway Block LB-13) have already been ratified by the National Legislature. The others are pending conclusion of the review process.
THE REVIEW PROCESS:
A contract review process was put in place by the GOL in compliance with the agreement between the GOL and the International Community under the GEMAP (Governance and Economic Management Assisance Program) process. The GEMAP objective is similar to that of the Extrative Industries Transparancy International (EITI) process, which Liberia has also joined, and its framework aims for all parties (both Liberia and the International Community) to turn the page and get rid of previous malpractices that led to civil wars and self destruction in Liberia.

23. Liberia Petroleum Industry National Oil Company of Liberia (NOCAL)
National Oil Company of Liberia (NOCAL) Proposed Organizational Structure of NOCAL
Liberia Petroleum Industry
National Oil Company of Liberia (NOCAL)
Inter-Ministerial Petroleum Technical Committee
NOCAL Board of Directors
Key Regulators
President/CEO
CEO Office Staff
Legal Counsel
V. P. for Administration
V. P. for Technical Services
TGS-NOPEC and Other Consultans
Comptroller
Accounts Department
Personnel Department
Marketing Department
General Services Department
Exploration Department
Engineering Department
Environmental Section
Key Players

24. MANDATE OF NOCAL
The National Oil Company of Liberia (NOCAL) was established in 2000 with the mandate:
“To exclusively handle activities leading to its exploration, discovery and production;” and
 “… holding all of the rights, title and interest of the Republic of Liberia in the deposits and reserves of liquid and gaseous hydrocarbons within the territorial limits of the Republic of Liberia, whether potential, proven, or actual, with the aim of facilitating the development of the oil and gas industry in the Republic of Liberia”

25. SOME CONTRACT & FISCAL PROVISIONS
IN THE LIBERIAN MODEL PSC WE HAVE:
Cost Recovery % - Negotiable
No Royalty
Production Split – Negotiable
Taxes – Paid from Contractor’s Share %
Production Bonus but No Signature Bonus
Contributions to Hydrocarbon Development Fund and Training of Liberians
Surface Rentals
Minimum Work Obligation
Financial Expenditure Obligation
Negotiate Seismic and Drilling Obligations
We Focus on “Win-Win” Agreement
Our Terms are Among the Best of Any Country

26. A NEW LICENSE ROUND WILL BE DECIDED BY THE BOARD OF DIRECTORS OF NOCAL
License round will be officially announced at an appropriate time by the Board of Directors NOCAL.
As a Pre-License Round, Oil Companies are invited to purchase the TGS-NOPEC Data for study.
We are open to receiving proposals from companies and investors.

27. CONCLUSION
The results of exploration to date indicate a very promising future for hydrocarbon exploration offshore Liberia,
And we are very optimistic that oil prone petroleum systems occur in the offshore Liberia Basins
Our Contract and Fiscal Terms provide for incentives and focus on “Win-Win” Agreements that are among the best of any country.

28. PROPOSED WEBSITE UNDER DEVELOPMENT
THE END.
THANK YOU.
PROPOSED WEBSITE UNDER DEVELOPMENT