Sierra Leone will promote its offshore oil licensing opportunities and 2025 drilling plans at the Invest in African Energy Forum in Paris. The country estimates substantial oil reserves, with government data indicating 44 billion barrels in place. With plans for its first offshore drilling campaign and the formation of a National Oil Company, Sierra Leone is poised to advance its oil sector and attract foreign investment.
The upcoming Invest in African Energy Forum, scheduled for May 13-14, 2025, in Paris, will feature Sierra Leone’s Director General of the Petroleum Directorate, B. L. Mansaray. He is set to promote the country’s promising offshore oil potential and available licensing opportunities in the region.
Sierra Leone’s offshore oil resources are considerable, with estimates indicating a total of 44 billion barrels, of which 15 to 20 billion barrels are recoverable. The oil’s high quality, characterized by an API of 35 to 42, makes it an attractive target for international investors. Despite being a frontier exploration market, there have been significant developments, including four discoveries made by Anadarko and Lukoil.
In recent endeavors, Sierra Leone completed its fifth licensing round in September, offering 56 offshore blocks across an area of 63,000 square kilometers. The round drew attention from various companies, with FA Oil acquiring six oil blocks. The Petroleum Directorate has begun negotiations with smaller independent firms and national oil companies following the round’s closure.
A National Oil Company (NOC) is nearing establishment, intended to hold a 10% stake in all exploration licenses and support the nation’s oil and gas strategy. The government aims for a stake of 25-30% in various projects and has implemented competitive fiscal terms with stabilization clauses to safeguard investor interests.
Sierra Leone is arranging its inaugural offshore drilling campaign for 2025 alongside efforts to establish a refinery. This development aims to support local markets and decrease dependence on imported refined products, currently averaging 15,000 barrels per day. These initiatives are part of a comprehensive masterplan for the oil and gas sector, aimed at maximizing resource value and ensuring local benefits.
Sierra Leone is actively seeking to leverage its offshore oil potential through targeted initiatives and strategic partnerships. With a newly established National Oil Company, promising fiscal terms, and plans for extensive exploration and drilling campaigns, the nation is positioning itself as an emerging player in the oil market. These efforts, highlighted at the forthcoming Invest in African Energy Forum, underscore Sierra Leone’s commitment to attracting investment and enhancing local involvement in the sector.
Original Source: africanminingmarket.com
