LAGOS, April 23 – Sierra Leone has signed a petroleum license agreement with Marginal Energy Limited, granting the firm offshore exploration and production rights as it looks to revive its underdeveloped upstream sector.
The licence, issued through the Petroleum Directorate of Sierra Leone, covers five offshore blocks spanning roughly 6,800 square kilometres, marking a significant step in reopening the country’s frontier oil basin to investors.
Marginal Energy has committed to an exploration programme that includes seismic surveys and drilling, with planned investment expected to exceed $225 million.
Under the terms of the agreement, the government will retain a 10% carried interest in oil projects and 5% in gas during the exploration and development phases. It also holds the option to increase its stake by up to 9% on a paid basis once production begins.
The deal was signed at the Invest in African Energy conference in Paris, where Sierra Leone has been actively promoting its offshore opportunities to global investors.
President Julius Maada Bio said the agreement reflects the country’s commitment to developing its petroleum resources while ensuring national benefits.
The government is also preparing a new offshore licensing round supported by updated seismic data, aiming to attract further investment and unlock the potential of its largely unexplored offshore reserves.
