KEY POINTS
- Sierra Leone signed a $225 million offshore oil agreement with Nigeria’s Marginal Energy covering five exploration blocks
- The project includes seismic surveys, drilling, and government stakes in oil and gas production
- The deal forms part of Sierra Leone’s wider effort to revive its upstream petroleum sector and attract foreign investment
Sierra Leone has signed a petroleum licence agreement with Nigeria-based Marginal Energy Limited, granting the company offshore exploration and production rights as part of efforts to revive its underdeveloped oil and gas sector.
The agreement was concluded through the country’s Petroleum Directorate of Sierra Leone and covers five offshore blocks identified as G-145, G-146, G-147, G-160, and G-161. Together, the blocks span approximately 6,800 square kilometres of offshore territory.
Under the deal, Marginal Energy, an independent Nigerian oil company, will undertake a seismic survey and drilling programme, with total exploration spending projected to exceed $225 million.
The agreement also provides Sierra Leone with a 10 percent carried interest in oil projects and a 5 percent stake in gas during both exploration and development phases. In addition, the government retains an option to acquire up to an additional 9 percent participating interest on a paid basis once production begins.
Strategic push to revive upstream sector
The licence was signed during the Invest in African Energy conference in Paris, where Sierra Leone has been actively marketing its offshore acreage to international investors in a bid to attract fresh capital and technical expertise.
Officials say the country is working to reposition its petroleum sector by using newly acquired seismic data to launch a fresh offshore licensing round aimed at stimulating exploration in its frontier basin.
Government officials, including President Julius Maada Bio, described the agreement as a significant step toward unlocking national petroleum resources while ensuring long-term economic benefits for the country.
The deal reflects Sierra Leone’s broader strategy to diversify its economy and reduce dependence on traditional revenue sources by developing its natural resource base.
By partnering with experienced regional operators like Marginal Energy, the country aims to accelerate exploration activity, attract further investment, and strengthen its position in West Africa’s emerging offshore energy landscape.
