Sierra Leone has signed a $225 million offshore oil exploration and production agreement with Nigerian energy company Marginal Energy Limited, marking a major step in the country’s efforts to revive its underdeveloped petroleum sector.
The agreement, executed through the Petroleum Directorate of Sierra Leone, grants the Nigerian firm exploration and production rights across five offshore blocks—G-145, G-146, G-147, G-160 and G-161, covering approximately 6,800 square kilometres.
Under the deal, Marginal Energy has committed to an extensive seismic survey and drilling programme, with exploration investments expected to exceed $225 million. The project is aimed at generating new geological data and identifying commercially viable oil and gas reserves in Sierra Leone’s largely untapped offshore basin.
The agreement was signed during the Invest in African Energy Conference in Paris, where Sierra Leone has been actively promoting investment opportunities in its offshore energy sector.
As part of the arrangement, the Sierra Leonean government will retain a 10 per cent carried interest in oil projects and a 5 per cent stake in gas developments during the exploration and development phases. The government also has the option of increasing its participation by up to an additional 9 per cent on a paid basis once production begins.
President Julius Maada Bio described the agreement as a significant milestone in the country’s efforts to unlock its petroleum potential while ensuring long-term benefits for its citizens. The deal forms part of a broader strategy to attract foreign investment, stimulate exploration activity and strengthen Sierra Leone’s position within West Africa’s growing energy industry.
Industry observers say the partnership highlights the growing regional influence of indigenous African energy firms and could help reignite exploration interest in Sierra Leone’s frontier offshore basin.
