By Stephanie Daniels
- The deal marks a new step in positioning Sierra Leone as an emerging upstream destination with over $225 million in committed exploration investment
Energy Window International (Media) – The Government of Sierra Leone says it has signed a new offshore petroleum license agreement with Nigerian-based independent energy company – Marginal Energy, geared towards attracting upstream investment to unlock the country’s hydrocarbon potential.
Energy Window International (Media) gathered that the agreement was formalized on April 23 at the Invest in African Energy Forum in Paris, reinforcing Sierra Leone’s growing profile among frontier exploration markets.
Signed through the Petroleum Directorate of Sierra Leone (PDSL), the license it was reported grants Marginal Energy exclusive rights to explore, develop and produce hydrocarbons across five offshore blocks – G-Blocks 145, 146, 147, 160 and 161 – covering approximately 6,800 KM2.
The deal will also establish a full-cycle upstream program, spanning exploration through to potential production, “under a fiscal and regulatory framework designed to balance investor returns with national value creation.”
According to details released by PDSL the agreement included a structured exploration period of up to seven years, alongside a minimum work program incorporating 3D seismic acquisition, advanced geoscience studies and drilling commitments. The company added that it has even committed to invest more than $225 million during the exploration phases.
In a statement reportedly released by PDSL, President Julius Maada Bio said the agreement reflects the government’s commitment to “responsibly harnessing Sierra Leone’s natural resources for sustainable economic transformation,” adding that partnerships with capable investors will help accelerate development of the country’s petroleum sector.
PDSL Director General Foday Mansaray was also reported to have described the deal as “an important step in unlocking Sierra Leone’s offshore potential,” emphasizing the country’s focus on transparency and competitiveness. Provisions like local content development, technology transfer and environmental management, were also included in the agreement to enable proper alignment with Sierra Leone’s broader strategy to ensure long-term economic benefits from resource development.
For Marginal Energy, the agreement represents an entry into a largely underexplored basin with significant upside potential. The company which said it was committed to deploying its technical and financial capabilities to advance exploration in the country says has had more than two decades of successful exploration operation in the Niger Delta.
This development also follows a reconnaissance permit agreement signed by PDSL with Shell earlier, enabling Shell to conduct advanced geological and geophysical surveys across multiple offshore blocks.
