Sierra Leone will present its offshore licensing opportunities and 2025 drilling plans at the Invest in African Energy Forum in Paris. Key points include large estimated oil reserves, successful recent licensing rounds, the formation of a National Oil Company, and plans for increased local oil refining, aimed at establishing Sierra Leone as a prominent player in the oil industry.
Sierra Leone is set to underscore its offshore licensing opportunities and ambitious drilling plans for 2025 during the Invest in African Energy Forum in Paris on May 13-14, 2025. The event will feature B. L. Mansaray, Director General of the Petroleum Directorate of Sierra Leone (PDSL), promoting the country’s significant upstream potential and its available offshore acreage.
The offshore oil reserves in Sierra Leone are estimated at 44 billion barrels, with 15 to 20 billion barrels considered recoverable. This oil, characterized by an API of 35 to 42, is attractive to global investors. Although Sierra Leone is a frontier exploration market, there have been notable advancements in offshore exploration, marked by four successful discoveries made by Anadarko and Lukoil, complemented by extensive seismic data available for exploration.
In its latest licensing round completed in September, Sierra Leone offered 56 offshore blocks over an area of 63,000 km², garnering interest from multiple companies. FA Oil, part of Nigeria’s Famfa Oil, secured six blocks, prompting the PDSL to enter direct negotiations primarily with smaller independent firms and national oil companies. Geological data sales to two supermajors have occurred, with further interest anticipated in existing seismic information.
The establishment of the country’s first National Oil Company is nearing completion. This new entity will possess a 10% stake in all new exploration licenses and will be pivotal in progressing Sierra Leone’s oil and gas strategies. The government seeks to negotiate a 25-30% stake in various projects and has implemented competitive fiscal terms, including stabilization clauses to safeguard investor interests.
Looking ahead, Sierra Leone is preparing for its inaugural offshore drilling campaign scheduled for 2025 and aims to build a refinery to enhance local supply and reduce dependency on imports, which currently average 15,000 barrels per day. This refinery initiative is a component of a comprehensive oil and gas master plan designed to maximize value and secure local benefits. The PDSL’s participation at the forum will spotlight Sierra Leone’s potential and drive investment toward evolving the country into a significant player in the oil market.
In summary, Sierra Leone is actively promoting its offshore oil potential and strategic initiatives aimed at attracting investment in the upcoming Invest in African Energy Forum. With substantial hydrocarbon reserves and ongoing licensing efforts, the establishment of a National Oil Company, and plans for local refinery development, Sierra Leone is positioning itself for significant growth in the oil sector. Through these efforts, the country aims to transform its economy and enhance local benefits from resource extraction.
Original Source: africanminingmarket.com
