Sierra Leone will showcase offshore licensing opportunities and 2025 drilling plans at the IAE forum in May 2025. The country has significant oil potential, with 44 billion barrels in place, and completed its recent licensing round with active interest. Efforts include forming a National Oil Company and initiating local refinery plans, aiming to enhance the oil sector’s development.
Today, B. L. Mansaray, Director General of the Petroleum Directorate of Sierra Leone (PDSL), will promote Sierra Leone’s offshore licensing opportunities and 2025 drilling plans at the Invest in African Energy (IAE) forum in Paris, set for May 13-14, 2025. This initiative seeks to highlight the nation’s substantial upstream potential and available offshore acreage.
Sierra Leone’s offshore oil potential is significant, with government estimates indicating 44 billion barrels of total oil in place, of which 15 to 20 billion barrels are considered recoverable. The light and sweet oil, with an API between 35 and 42, is particularly attractive for global investors. Although it remains a frontier exploration market, the country has made notable strides in offshore exploration, including four discoveries made by Anadarko and Lukoil, complemented by extensive 2D and 3D seismic data.
In September, Sierra Leone completed its fifth licensing round, offering 56 offshore blocks across 63,000 km², which drew interest from three companies. FA Oil, a subsidiary of Nigeria’s Famfa Oil, successfully secured six oil blocks. Following this round, the PDSL has begun direct negotiations focused on smaller independent companies and national oil companies, with two supermajors acquiring geological data and further interest anticipated in legacy seismic data.
Sierra Leone is nearing the establishment of its first National Oil Company (NOC), which will hold a 10% stake in all exploration licenses and is expected to enhance the government’s oil and gas strategy. The government seeks to achieve a 25-30% stake in projects, with competitive fiscal terms and stabilization clauses to safeguard investor interests.
With heightened sector activity, Sierra Leone is gearing up for its inaugural offshore drilling campaign in 2025. Additionally, plans for a refinery to cater to local market needs are underway, which aims to decrease dependence on imported refined products averaging 15,000 barrels per day. This refinery is part of a larger oil and gas masterplan that aims to add value to national resources and ensure local benefits.
In summary, Sierra Leone is positioned to attract investment in its offshore oil sector through upcoming licensing opportunities and plans for a significant drilling campaign in 2025. With the establishment of a National Oil Company and plans for a local refinery, the government aims to ensure beneficial returns from natural resources, enhancing its profile within the global oil market. Promoting these initiatives at the IAE forum will further showcase Sierra Leone’s capability as an emerging oil frontier.
Original Source: africanminingmarket.com
