Sierra Leone has signed a landmark offshore petroleum licence agreement with Nigerian independent Marginal Energy, committing over $225 million in exploration investment across five blocks covering approximately 6,800 square kilometres of the country’s Atlantic frontier basin — a move that signals a decisive turn toward unlocking one of West Africa’s least-explored hydrocarbon provinces.
The licence, signed through the Petroleum Directorate of Sierra Leone (PDSL), grants Marginal Energy exclusive rights to explore, develop and produce hydrocarbons across G-Blocks 145, 146, 147, 160 and 161. The agreement establishes a full-cycle upstream programme spanning exploration through to potential production, anchored by a structured seven-year exploration period that includes 3D seismic acquisition, advanced geoscience studies and firm drilling commitments.
Under the terms of the deal, the Sierra Leonean state will hold a 10 per cent carried interest in oil projects and five per cent in gas during exploration and development, with an option to acquire an additional participating interest of up to nine per cent on a paid basis once production begins — a framework designed to balance investor returns with national value creation.
President Julius Maada Bio described the agreement as a reflection of the government’s commitment to “responsibly harnessing Sierra Leone’s natural resources for sustainable economic transformation.” PDSL Director General Foday Mansaray called it “an important step in unlocking Sierra Leone’s offshore potential,” citing the country’s focus on transparency and competitiveness. The agreement also contains provisions for local content development, technology transfer and environmental management — pillars of Sierra Leone’s broader strategy to ensure long-term economic benefits from resource extraction.
For Marginal Energy, which brings more than two decades of operational experience in Nigeria’s Niger Delta, the deal marks an entry into a largely underexplored basin with significant geological upside. The company said it is committed to deploying its technical and financial capabilities to advance exploration while upholding high environmental and operational standards. The signing follows a reconnaissance permit agreement inked by PDSL with Shell just a day earlier at the same investment forum, enabling the supermajor to conduct geological and geophysical surveys across multiple offshore blocks. Sierra Leone is also preparing a new offshore licensing round using fresh seismic data to further reignite exploration interest in the basin.
Sources: energy-pedia.com | bairdmaritime.com