Sierra Leone will promote its offshore oil licensing and drilling plans at the Invest in African Energy Forum in May 2025, showcasing its potential with substantial oil reserves. The country aims to form its National Oil Company and plans for an inaugural drilling campaign, alongside constructing a local refinery to reduce import reliance.
Sierra Leone is poised to showcase its offshore licensing opportunities and upcoming drilling plans during the Invest in African Energy Forum in Paris on May 13-14, 2025. B. L. Mansaray, the Director General of the Petroleum Directorate of Sierra Leone, will present the nation’s upstream potential, emphasizing the substantial offshore oil resources. The government estimates total oil in place at approximately 44 billion barrels, with recoverable estimates ranging from 15 to 20 billion barrels, characterized as light and sweet oil with an API of 35 to 42, appealing to global investors.
Despite being categorized as a frontier exploration market, Sierra Leone has made meaningful advancements, including four significant oil discoveries by Anadarko and Lukoil, alongside extensive 2D and 3D seismic data for further exploration. The recent licensure round, closed in September, offered 56 offshore blocks, attracting interest and resulting in FA Oil securing six blocks. Following this, the Petroleum Directorate has initiated negotiations with smaller independent and national oil companies, with supermajors also acquiring geological data.
The establishment of Sierra Leone’s first National Oil Company (NOC) is in its final stages, which will hold a 10% stake in all exploration licenses and enhance the national oil and gas strategy. The government’s goal is to negotiate a 25-30% equity stake in major projects while adopting attractive fiscal terms featuring stabilization clauses to ensure investor protection.
In line with increasing sector activity, Sierra Leone plans its inaugural offshore drilling campaign for 2025 and aims to construct a refinery to economically serve the local market and diminish dependence on imported refined products, which currently average 15,000 barrels per day. This aligns with a broader oil and gas master plan designed to maximize resource value, ultimately ensuring local benefits as the nation strives to unlock its hydrocarbon potential, further emphasized during the PDSL’s participation at the forum.
In summary, Sierra Leone is focusing on leveraging its extensive offshore oil potential by promoting licensing opportunities and drilling plans at the upcoming Invest in African Energy Forum. The nation’s hydrocarbon resources present significant investment prospects with the establishment of its National Oil Company and the upcoming drilling campaign in 2025. These strategies are pivotal in enhancing local economies and ensuring benefits from the oil sector.
Original Source: africanminingmarket.com
