Sierra Leone is making significant strides in its efforts to attract investment in its oil and gas sector, with plans to drill exploration wells by 2025 and establish a National Oil Company (NOC) within the next month. The African nation, which has an estimated 44 billion barrels of oil resources, is on the verge of awarding nine exploration blocks to a major African independent as part of its push to revive the sector.

Foday Mansaray, the Director General of Sierra Leone’s Petroleum Directorate, highlighted the country’s potential as a future oil producer, citing successful exploration activities in neighbouring countries such as Ghana, Cote d’Ivoire, and Senegal. Despite previous discoveries in the 2000s, Sierra Leone has not yet commercialized its oil resources, but Mansaray is optimistic about the country’s prospects.

With Total oil in place estimated at 44 billion barrels, of which 1.5 billion-20 billion barrels are deemed recoverable, Sierra Leone is attracting interest from both African independents and supermajors. The recent licensing round saw three companies apply for blocks, with FA Oil securing six blocks and seeking to farm them out. The government is also engaging in direct negotiations with a major African independent, with an announcement expected soon.

In addition to exploration activities, Sierra Leone is also focused on establishing a National Oil Company to manage its oil and gas assets. The NOC will hold a 10% stake in all exploration licenses, while the government will retain around 25%-30% of revenues. Contracts will include stabilization clauses to protect investors against changes in government policies.

Furthermore, Sierra Leone is considering the construction of a refinery to meet its domestic demand for refined products.

Currently, the country imports all its refined products, but with plans to utilize its oil resources, Sierra Leone aims to add value locally and potentially export any excess production to neighbouring countries.

Mansaray emphasized the government’s commitment to transparency and efficiency in the licensing process, with approvals and negotiations expected to be completed within 30 days.

The close collaboration between the Petroleum Directorate and President Julius Maada Bio’s administration has been instrumental in advancing the country’s oil and gas agenda. NJ Ayuk, Executive Chairman of the African Energy Chamber, commended Sierra Leone for its proactive approach to attracting investment in its hydrocarbon- rich basins. As a frontier market with significant potential, Sierra Leone offers a strategic opportunity for global E&l players seeking high returns. Overall, Sierra Leone’s ambitious plans for oil exploration and the launch of a National Oil Company, signal a new chapter in the country’s energy sector.

With strong government support, transparent regulations, and a wealth of untapped resources, Sierra Leone is poised to become a key player in the region’s oil and gas industry in the coming years.