Sierra Leone is set to showcase its offshore licensing opportunities and 2025 drilling plans at the Invest in African Energy forum. With an estimated 44 billion barrels of oil in place, the nation aims to attract investment and enhance its oil industry through the formation of a National Oil Company and upcoming drilling campaigns.
Today, B. L. Mansaray, the Director General of the Petroleum Directorate of Sierra Leone (PDSL), is set to promote the country’s offshore licensing opportunities and upcoming drilling plans at the Invest in African Energy forum in Paris, scheduled for May 13-14, 2025.
Sierra Leone has significant oil potential, with government estimates suggesting a total oil in place of 44 billion barrels, of which 15 to 20 billion barrels are recoverable. This light and sweet oil, with an API ranging from 35 to 42, is particularly appealing to investors. Although still a frontier exploration market, Sierra Leone has made substantial headway with four oil discoveries by Anadarko and Lukoil, in addition to extensive seismic data available for analysis.
The recent fifth licensing round, concluded in September, offered 56 offshore blocks encompassing 63,000 km². This round garnered interest from three companies, with FA Oil acquiring six blocks. Following the round, the PDSL began direct negotiations focusing on smaller independent and national oil companies. Notably, two supermajors have already purchased geological data, indicating a growing interest in Sierra Leone’s resources.
The formation of Sierra Leone’s first National Oil Company (NOC) is nearing completion. The NOC will hold a 10% stake in all exploration licenses and contribute to advancing the nation’s oil and gas strategy. The government aspires to secure a 25-30% stake in projects, supported by favorable fiscal terms designed to attract investment.
Upcoming plans include Sierra Leone’s inaugural offshore drilling campaign set for 2025 and the establishment of a refinery aimed at catering to the local market to reduce dependence on refined imports, currently averaging 15,000 barrels per day. This initiative forms part of a broader oil and gas masterplan, which focuses on enhancing the nation’s resources and ensuring local benefits.
In conclusion, Sierra Leone is strategically positioning itself to become a significant player in the offshore oil market through its investment in infrastructure, favorable licensing rounds, and the establishment of a National Oil Company. The country’s vast untapped oil reserves and upcoming drilling plans underscore its potential for growth and attractiveness to international investors, particularly during the upcoming Invest in African Energy forum in Paris.
Original Source: africanminingmarket.com
