Sierra Leone has entered into a $225 million offshore petroleum agreement with Nigerian energy company Marginal Energy Limited, marking a new phase in efforts to unlock the country’s offshore oil and gas potential.
The agreement, signed through the Petroleum Directorate of Sierra Leone, grants exploration and production rights over five offshore blocks identified as G-145, G-146, G-147, G-160, and G-161, covering an estimated 6,800 square kilometres.
Under the deal, Marginal Energy Limited is expected to carry out seismic surveys and drilling activities to assess hydrocarbon prospects across the licensed areas. The investment commitment attached to the project is projected to exceed $225 million.
The structure of the agreement also outlines government participation in future production. Sierra Leone will retain a 10 per cent carried interest in oil developments and a 5 per cent stake in gas projects during the exploration and development stages. In addition, the government has the option to acquire an additional 9 per cent participating interest once production begins, subject to payment.
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The signing took place during the Invest in African Energy Conference, where Sierra Leone has been actively engaging investors to attract capital into its underdeveloped offshore sector. Authorities say the deal is part of a broader strategy to strengthen energy production, expand economic opportunities, and improve national revenue generation.
The development reflects a wider trend across Africa, where governments are partnering with private energy firms to accelerate exploration and tap into untapped hydrocarbon reserves amid rising global energy demand and competition for investment.
The $225 million offshore agreement positions Sierra Leone for expanded exploration activity and potential long-term energy development, while reinforcing its strategy to attract foreign investment into its oil and gas sector.
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