Sierra Leone Signs $225m Offshore Oil Deal with Nigerian Firm

Sierra Leone has signed a $225 million petroleum licence agreement with Nigeria-based Marginal Energy Limited, granting the company rights to explore and develop offshore oil blocks as part of efforts to revitalise its energy sector.

The deal, concluded through the Petroleum Directorate of Sierra Leone, covers five offshore blocks, G-145, G-146, G-147, G-160 and G-161, spanning approximately 6,800 square kilometres.

The agreement marks a renewed push by Sierra Leone to attract upstream investment into its largely underdeveloped offshore basin, which has seen limited exploration activity despite earlier discoveries.

Under the terms of the agreement, Marginal Energy will undertake seismic surveys and drilling operations, with total exploration spending expected to exceed $225 million.

The government will retain a 10 per cent carried interest in oil projects and a 5 per cent stake in gas during the exploration and development phases. It also has the option to increase its participation by up to 9 per cent on a paid basis once production commences.

President Julius Maada Bio described the agreement as part of a broader strategy to harness the country’s petroleum resources for economic growth.

He said the deal underscores the government’s commitment to developing the sector in a way that delivers tangible benefits to citizens.

The agreement was signed on the sidelines of the Invest in African Energy conference in Paris, where Sierra Leone has been promoting its offshore potential to international investors.

Authorities are also preparing a new offshore licensing round supported by fresh seismic data aimed at reducing exploration risks and improving investor confidence.

Director General of the Petroleum Directorate, Foday Mansaray, has said the country is focused on attracting credible investors while strengthening technical understanding of its offshore resources.