Sierra Leone has awarded an offshore oil and gas license to Nigerian-based Marginal Energy Limited, giving the company the rights to explore and produce hydrocarbons as the country intensifies efforts to attract investment into its largely untapped upstream sector.
The Petroleum Directorate of Sierra Leone (PDSL) executed the agreement, which covers offshore blocks G-145, G-146, G-147, G-160, and G-161. According to the government, the blocks cover about 6,800 square kilometers within Sierra Leone’s offshore basin.
Marginal Energy has committed to carrying out extensive seismic surveys and drilling activities under the license. The exploration program is expected to bring in more than $225 million in investment.
Under the agreement, the Sierra Leonean government will hold a 10 percent carried interest in oil developments and a 5 percent stake in gas projects during both the exploration and development stages.
Sierra Leone is also preparing to launch a new offshore licensing round backed by newly acquired seismic data to encourage more exploration activity across its frontier basin. President Julius Maada Bio said the agreement reflects the government’s commitment to developing the country’s petroleum resources responsibly while ensuring that the benefits support national development and economic growth.
source: businessday.ng
African Energy Council