Sierra Leone has signed a $225 million offshore oil exploration and production agreement with Nigeria-based Marginal Energy Limited, as the country steps up efforts to revive its upstream petroleum sector.
The agreement was signed on Thursday at the Invest in African Energy conference in Paris, where Sierra Leone has been actively promoting its offshore licensing opportunities.
The licence covers offshore blocks G-145, G-146, G-147, G-160 and G-161, spanning about 6,800 square kilometres in the country’s largely underexplored offshore basin.
President Julius Maada Bio said the agreement reflects Sierra Leone’s commitment to unlocking its petroleum potential while ensuring benefits for its citizens.
Under the deal, Marginal Energy has committed to an extensive seismic survey and drilling programme, with exploration spending expected to exceed $225 million.
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Sierra Leone will retain a 10 per cent carried interest in oil projects and 5 per cent in gas during exploration and development phases, meaning the government does not bear upfront costs.
The country also has the option to acquire up to an extra 9 per cent participating interest on a paid basis once production begins.
Sierra Leone has long sought to establish itself as an oil-producing nation, with early exploration campaigns in the 1980s identifying offshore hydrocarbon potential.
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The renewed push has gained traction, with Shell signing a similar agreement on April 22, just five months after Italy’s Eni entered a comparable deal.
The agreement reflects a broader trend of Nigerian indigenous oil companies expanding across Africa, with Oando extending operations to Angola and exploring opportunities in Ghana and Ivory Coast.
