Liberia had been in conflict for over 15 years. Now, it is recovering since about 5 years ago that the conflict is over. This has caused interest to mining and agriculture companies. One of the companies that has reflected this interest is Chevron Corp. Chevron Corp made a deal with Liberia to explore for “oil and gas in three deepwater blocks off the West African country's coast”.
The idea to explore for oil and gas in Liberia came to Chevron about one year ago when Anadarko Petroleum Corp made a find in Sierra Leone, near Liberia's border. This exploration will begin this year and will last for approximately about three years. Along with making this deal, Chevron will implement all the new technology, the best practices in transparency and efficiencies. It will as well bring an excellent source of community and social responsibility.
This will help the oil and gas industry to increase if in any case they get any findings in Liberia since now a days this resources are very scarce. More companies would start to take interest in establishing companies in Liberia. If Chevron results positive in this exploration, it will make a large amount of money because they are making their own exploration and will not need to buy this resources from other exploration company, having a lower cost and selling it at a higher cost. This would make their income much greater.
Sources: Reuters
This is very interesting and leaves me intrigued as to how much Chevron could stand to grow in terms of total production of crude oil barrels per day. This is especially interesting because according to Chevron's website they currently produce 2.7 net million barrels of oil per day. In addition to this I thought it was interesting that the market reacted to the news of Chevron beginning this exploration in Liberia by Chevron's shares rise 48 cents.
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