Rep. J. Fonati Koffa Legacy

Section 15.3 of the Oranto Agreement is deceptive and illegal. Here is how and why.

The Liberian revenue code section 753 says petroleum producers including NOCAL are required to pay 10% royalty on gross.
This is the law.

The Oranto agreement section 15.3(a) divides royalty into two categories. Less than 1500 meters, 10 %. Greater than 1500 meters 5%. This is illegal.

The deception: The drafters and negotiators know that oranto depth on block 15 is 2500-3600. Therefore, there is no way they will pay the legal 10%. They will be paying the illegal 5 per cent.
Who is eating the other 5?

In fact, all of Oranto's other blocks are greater than 1500 meters. That provision was just inserted to confuse and deceive.

LB-15: 2500m - 3600m
LB-16: 2000m - 3400m
LB-22: 3300m - 4000m
LB-24: 3200m - 4000m

Oranto ultra deep blocks in shade

See you next week