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ADNews-MOnrovia, Liberia: The Liberian Senate has passed into law a landmark bill seeking to formally establish the Liberia Petroleum Refining Company (LPRC) as a statutory entity, marking what lawmakers describe as a major reform in the country’s petroleum sector. The legislation, proffered by Montserrado County Senator Abraham Darius Dillon, now awaits concurrence from the House of Representatives before being forwarded to the President for assent.
The passage followed extensive debate on the Senate floor, with lawmakers emphasizing the need to reform and modernize Liberia’s petroleum governance framework, particularly the longstanding structure under which the LPRC has operated since 1978 without clear statutory backing.
As the proponent of the legislation, Senator Dillon described the bill as a historic corrective measure aimed at placing LPRC on a solid legal footing.
“It will shock many to know that LPRC has had no statutory foundation since 1978. What we are doing today will be recorded in history as a major reform,” Dillon asserted.
He explained that the bill seeks to transition LPRC from operating under articles of incorporation to becoming a fully established statutory entity, with clearly defined roles, responsibilities, and accountability mechanisms.
“This law gives the President of Liberia the legal authority to appoint leadership at LPRC, and those appointed will now be subject to Senate confirmation, something that has never happened before,” he noted.
Dillon also addressed concerns about the concentration of power within LPRC, acknowledging that the current structure allows the entity to regulate, license, and operate within the same space.
“LPRC determines who imports petroleum, who stores it, and who also sells it. That concentration of power is not ideal. This bill sets the basis for reform, including eventual unbundling within a five-year transition period,” he explained.
In addition, the Chairman of the Senate Committee on Hydrocarbon and Energy, Senator Edwin Melvin Snowe, praised the Senate for what he termed a decisive step toward strengthening the petroleum sector.
“This act ensures that LPRC will now operate with greater accountability and under direct legislative oversight,” Snowe said. “We are acting in the best interest of the industry and the Liberian people.”
He, however, recommended further legislative review to harmonize the new law with existing statutes governing the Liberia Petroleum Regulatory Authority (LPRA).
“We must revisit the LPRA Act to avoid conflicts, especially between upstream and downstream regulations. That way, there will be no ambiguity in the sector,” he cautioned.
Following the debate, a motion was filed and seconded for the bill to be passed into law and forwarded to the House of Representatives for concurrence. The motion received overwhelming support from members of the Senate.
Lawmakers also agreed that key inputs and amendments raised during plenary discussions were duly incorporated into the final version of the bill prior to passage.
With Senate approval secured, the bill now moves to the House of Representatives, where it is expected to undergo further scrutiny. If concurred, it will be sent to the President for signing into law.
Observers say the legislation, once enacted, could redefine the structure and governance of Liberia’s petroleum sector, ensuring transparency, accountability, and efficiency in the management of the country’s downstream oil and gas operations.
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