Sierra Leone said on Thursday it had signed a petroleum licence agreement with Nigeria-based Marginal Energy, 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.
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 five per cent in gas during exploration and development, with an option to acquire an additional participating interest on a paid basis of up to nine 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.
Sierra Leone is preparing a new offshore licensing round using fresh seismic data to rekindle exploration interest in its frontier basin.
Sierra Leone President Julius Maada Bio said the agreement reflected the government’s commitment to developing petroleum resources while delivering national benefits, according to the statement.
(Reporting by America Hernandez in Paris; Writing by Isaac Anyaogu; Editing by Matthew Lewis)
