Sierra Leone to Auction 60 Offshore Oil and Gas Blocks at the End of the Year
Sierra Leone will delay its new oil and gas auction until the end of the year as the country awaits results from a large-scale seabed survey that has just concluded — the first such study in over ten years, according to Reuters.
Last month, the company GeoPartners, together with the national petroleum authority, spent six weeks studying the seabed off the coast of Sierra Leone to reduce risks for companies that may wish to explore for oil and gas in the future.
The collected data is now being processed and is expected to be presented to potential investors in October. Only after that, likely closer to the end of the year, will the country launch a new licensing round. The ultra-deepwater blocks are unlikely to be included in the auction, as they are usually negotiated separately with companies.
Up to 60 offshore blocks for oil and gas exploration may be offered at auction. Previously, companies like Anadarko and LUKOIL discovered oil in Sierra Leone, but the volumes were too small for commercial development.
The country’s authorities claim that offshore oil and gas reserves in Sierra Leone are substantial — approximately 30 billion barrels of oil equivalent (boe). This includes the large Vega field, previously discovered by Anadarko, with reserves estimated at about 3 billion barrels.
Sierra Leone is located between oil-producing countries (Côte d’Ivoire to the south and Senegal to the north) and aims to become an equally attractive destination for exploration. The country is also drawing inspiration from the recent successes of Guyana and Namibia.
Over the past 18 months, major oil companies such as Shell, Petrobras, Hess, and Murphy Oil have already purchased research data on Sierra Leone.
