Sierra Leone has awarded offshore exploration and production rights to Nigeria-based Marginal Energy  Limited as part of efforts to revive interest in its under-explored petroleum sector.

The Petroleum Directorate of Sierra Leone (PDSL) signed the licence agreement on Thursday, granting the Nigerian independent company rights over five offshore blocks: G-145, G-146, G-147, G-160, and G-161. The blocks cover a total area of approximately 6,800 square kilometres. Under the deal, Marginal Energy has committed to an extensive seismic and drilling programme, with expected exploration spending exceeding $225 million.

The agreement gives the Sierra Leonean state a 10% carried interest in oil projects and 5% in gas projects during the exploration and development phases. The government also has the option to acquire an additional participating interest of up to 9% on a paid basis once production commences. The signing took place at the Invest in African Energy conference in Paris, where Sierra Leone has been actively promoting its offshore licensing opportunities to international investors.

President Julius Maada Bio welcomed the agreement, stating it demonstrates the government’s commitment to developing the country’s petroleum resources while ensuring maximum benefits for Sierra Leoneans. The deal comes as Sierra Leone prepares a new offshore licensing round supported by fresh seismic data aimed at rekindling interest in its frontier basin.

On Wednesday, the country also signed a reconnaissance permit with oil major Shell to conduct geological and geophysical studies across 19 offshore blocks.

Marginal Energy is a Nigerian independent oil and gas company focused on upstream exploration and production, with particular expertise in the development of marginal fields.

Source: Reuters