At the Invest in African Energy forum in Paris, Sierra Leone will present its offshore licensing opportunities and drilling plans for 2025. The country estimates a total of 44 billion barrels of oil, with significant recoverable resources. Efforts include forming a National Oil Company and initiating a drilling campaign, as Sierra Leone seeks to reduce reliance on imported products and maximize local benefits.
Today, Mr. B. L. Mansaray, the Director General of the Petroleum Directorate of Sierra Leone (PDSL), will showcase the country’s extensive offshore licensing prospects and upcoming drilling activities at the Invest in African Energy (IAE) forum in Paris on May 13-14, 2025. Sierra Leone features significant offshore oil potential, with government estimates indicating a total of 44 billion barrels in place, 15 to 20 billion of which are deemed recoverable. The oil’s light and sweet characteristics, with an API range of 35 to 42, make it particularly appealing to international investors.
Although Sierra Leone is a frontier exploration territory, it has made notable advancements in offshore exploration, highlighted by four successful discoveries by Anadarko and Lukoil, along with comprehensive 2D and 3D seismic data available for exploration. The country completed its fifth licensing round in September, offering 56 offshore blocks over 63,000 square kilometers. This round garnered interest from three companies, with FA Oil securing six blocks. In addition, PDSL has commenced direct negotiations with smaller independent companies and national oil entities, while two supermajors have acquired geological data, indicating growing investor interest.
Furthermore, Sierra Leone is in the final phases of establishing its first National Oil Company (NOC), which will possess a 10% share in all exploration licenses and will be integral in propelling the country’s oil and gas strategy. The government aims for a 25-30% equity stake in projects, pending negotiation, and has introduced competitive fiscal conditions that include stabilization clauses to safeguard investors.
Sierra Leone is preparing for its inaugural offshore drilling campaign scheduled for 2025. Additionally, the administration is exploring the establishment of a refinery to meet local market demands and mitigate dependence on imported refined oil, which currently amounts to an average of 15,000 barrels per day. This initiative is envisioned as part of a comprehensive oil and gas masterplan aimed at enhancing the national resource value and securing local benefits from the industry.
Sierra Leone is poised to become a significant player in the offshore oil sector by highlighting its vast licensing opportunities and upcoming drilling plans. The establishment of a National Oil Company and a push towards local refining capacity underscore the government’s strategic objectives to increase investments and ensure that the nation fully benefits from its hydrocarbon resources. The participation in the Invest in African Energy Forum serves as a platform to attract global investment and showcase the country’s economic potential in this sector.
Original Source: africanminingmarket.com
