- Recognizing the vast potential of its untapped hydrocarbon reserves to drive economic growth while supplying the global energy demand, Sierra Leone is accelerating oil and gas exploration
Foday Mansaray II, Director General of the Petroleum Directorate of Sierra Leone, will speak at the 2024 edition of the African Energy Week (AEW): Invest in African Energy (www.AECWeek.com) conference – Africa’s premier event for the energy sector – scheduled for 4–8 November in Cape Town. During the event, Mansaray will showcase investment and partnership opportunities available across the west African country’s upstream sector.
Sierra Leone’s basins offer substantial opportunities for frontier E&P players. The country has witnessed four significant discoveries to date, despite having only drilled eight wells country-wide. Made by Anadarko (Venus-B1, Mercury-1 and Jupiter-1) and Lukoil (Savannah-1X), these finds are currently awaiting development and commercialization. During AEW: Invest in African Energy, Mansaray is expected to provide an update on ongoing drilling activities as well as the competitiveness of Sierra Leone’s upstream market.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
As part of its fifth licensing round – concluded in 2023 – Sierra Leone awarded six offshore oil blocks to Nigerian exploration firm Famfa Oil Limited, showcasing its commitment to unlocking its hydrocarbon potential while opening new investment opportunities for global investors. The licensing round offered over 63,000km2 of highly prospective acreage comprising 56 blocks.
Recognizing the vast potential of its untapped hydrocarbon reserves to drive economic growth while supplying the global energy demand, Sierra Leone is accelerating oil and gas exploration. The country is optimizing concession terms and establishing new partnerships with global upstream entities, strengthening its position as one of the most prospective upstream markets globally.
The country has introduced favorable tax terms, including a 25% corporate income tax, 10% royalty fee for oil, 5% royalty fee for gas, and a petroleum resources tax, to create an investor-friendly environment. Furthermore, the country is reducing permitting and contracting time to expedite industry expansion.
Sierra Leone is also prioritizing collaboration with regional stakeholders to integrate its oil and gas industry with the West African market. In 2022, the country signed an agreement with the Nigerian National Petroleum Corporation to leverage the Nigeria-Morocco Pipeline, demonstrating its commitment to harnessing regional energy resources for local consumption and international trade.
“Sierra Leone has been proactive in attracting new investments and promoting opportunities within its hydrocarbon-rich basins. As a frontier market with a working petroleum system, the country offers both a unique and strategic opportunity for global E&P players seeking high returns,” stated NJ Ayuk, the Executive Chairman of the African Energy Chamber.
Prospects within Sierra Leone’s oil and gas value chain will be unpacked during AEW: Invest in African Energy 2024, where Mansaray will participate in high-level ministerial panels, project profiles and exclusive networking sessions.
- Source: Distributed by APO Group on behalf of African Energy Chamber.
