Sierra Leone has signed an offshore petroleum licensing agreement with Nigeria-based Marginal Energy Limited, in a move aimed at expanding exploration activity in the country’s frontier oil basin.
The agreement covers five offshore blocks (G-145, G-146, G-147, G-160 and G-161) spanning approximately 6,800 square kilometres of the country’s offshore territory.
According to official sector details, the deal carries an exploration investment commitment of about $225 million, to be deployed by Marginal Energy over the course of the exploration phase. The figure represents projected upstream investment rather than an immediate financial transfer to the state.
Under the arrangement, the Government of Sierra Leone will retain a 10% carried interest in oil production and 5% in gas, with an option to acquire an additional up to 9% equity stake once commercial production begins, subject to payment terms.
The agreement forms part of Sierra Leone’s broader strategy to attract international investment into its frontier offshore basin, where significant hydrocarbon potential has been identified but not yet proven through large-scale commercial production.
While the deal signals renewed investor interest in the country’s petroleum sector, actual revenue gains for the state remain dependent on successful exploration outcomes and future commercial discoveries.
