S’Leone Signs $225m Offshore Oil Deal with Nigeria’s Marginal Energy

Sierra Leone has announced the signing of a petroleum licence agreement with Nigeria‑based ​Marginal Energy Limited, granting the company offshore exploration ‌and production rights as the government seeks to revive interest in its under‑explored upstream sector.

The licence, signed through the ​Petroleum Directorate of Sierra Leone (PDSL), covers offshore ​blocks G‑145, G‑146, G‑147, G‑160 and G‑161, spanning ⁠about 6,800 square kilometres, according to a government ​statement, a Reuters report said.

Marginal Energy, a Nigerian independent, has committed to ​a seismic and drilling programme with exploration spending expected to exceed $225 million.

Under the agreement, the state will hold a 10 per cent ​carried interest in oil projects and 5 per cent in ​gas during exploration and development, with an option to acquire an ‌additional ⁠participating interest on a paid basis of up to 9 per cent once production begins.

The deal was signed at the Invest in African Energy conference in Paris, ​where Sierra ​Leone has been ⁠promoting offshore licensing opportunities to international investors, the report added.