The Government of Sierra Leone Signed a Contract with Marginal Energy for Hydrocarbon Production in the Country
The deal value amounts to 225 million United States dollars
The Government of Sierra Leone has signed an agreement with Nigerian company Marginal Energy for the exploration and production of hydrocarbons on the country’s continental shelf.
This was reported by the Petroleum Directorate of Sierra Leone (PDSL).
The licence covers five offshore blocks — G-145, G-146, G-147, G-160 and G-161 — with a total area of about 6.8 thousand square kilometres. Under the agreement, Marginal Energy undertakes to carry out a full range of exploration activities, including seismic surveys and the drilling of exploration wells.
The exploration programme is expected to last up to 7 years. Total investment in the project is estimated at more than 225 million United States dollars.
The subsoil use agreement was signed during the international forum Invest in African Energy in Paris, aimed at attracting investment into Africa’s energy sector. In accordance with the terms of the deal, the state will receive a 10% stake in oil projects and 5% in gas projects at the exploration and development stages. In addition, there is a provision for increasing the state’s participation by an additional 9% on a commercial basis after the start of production.
President of Sierra Leone Julius Maada Bio stated that the signing of the agreement reflects the country’s strategic course toward developing the oil and gas sector while ensuring national interests.
The document contains a number of key provisions aimed at maximising long-term benefits for the state. In particular, the agreement provides for:
development of local human resources in order to create jobs and transfer professional skills;
introduction and transfer of modern technologies to strengthen the national industry base;
application of environmental management systems ensuring sustainability and safety of production activities.
For Marginal Energy, this deal represents a strategic expansion beyond its core region of operation — the Niger Delta in Nigeria. The company emphasised its commitment to using advanced technological solutions, as well as maintaining high environmental and operational standards at all stages of the project.
Against the backdrop of the gradual depletion of traditional oil-producing regions, investors are increasingly focusing on new перспективные зоны, including the continental shelf of Sierra Leone. Attempts to develop the country’s oil and gas resources were made as early as the 1980s. At that time, Mobil and Amoco drilled two exploration wells (1984 and 1985), but no significant industry development followed.
Currently, Sierra Leone is steadily intensifying efforts to attract international investment into its oil and gas sector:
- earlier, at the same forum, PDSL signed an agreement with Shell providing for in-depth geological and geophysical studies in a number of offshore blocks;
- in October 2025, a similar agreement was signed with Eni;
- in addition, Russia has shown interest in exploration projects: in January 2024, the parties signed a memorandum of cooperation предусматривающий conducting geophysical studies, assessing the resource base, preparing geological maps, and establishing joint working groups for specific projects.
The country’s authorities are preparing a new licensing round for offshore blocks and plan to use updated seismic data to increase interest in exploration within their prospective offshore basin.
