Sierra Leone Awards Offshore Blocks to Marginal Energy in Upstream Push

Sierra Leone has taken a further step to position itself as an emerging upstream destination, awarding a new offshore petroleum licence to Marginal Energy as part of a broader strategy to attract exploration capital and accelerate basin development.

The agreement, executed on 23 April at the Invest in African Energy Forum, grants the Nigerian independent exclusive exploration and production rights across five offshore acreage positions, spanning approximately 6,800 km².

Structured under the oversight of the Petroleum Directorate of Sierra Leone, the licence outlines a full-cycle upstream framework, covering exploration, appraisal and potential development phases. The fiscal regime is designed to remain competitive while ensuring domestic value capture through revenue generation and local participation.

Under the agreed work programme, Marginal Energy will undertake a multi-phase exploration campaign over a period of up to seven years. Commitments include 3D seismic acquisition, basin modelling, advanced geoscience studies and exploratory drilling. Total investment during the exploration phase is expected to exceed $225 million, signalling a material capital injection into Sierra Leone’s upstream sector.

President Julius Maada Bio stated that the agreement aligns with national priorities to responsibly monetise natural resources and stimulate long-term economic growth. He emphasised the role of experienced operators in accelerating sector development while maintaining environmental and governance standards.

Director General Foday Mansaray highlighted the transaction as a milestone in unlocking offshore potential, noting that regulatory transparency and investor-friendly policies remain central to Sierra Leone’s upstream strategy. The licence also embeds provisions for local content development, skills transfer and environmental stewardship.
For Marginal Energy, the award marks entry into a frontier basin with limited historical drilling but strong geological prospectivity. Leveraging its operational experience in the Niger Delta, the company is expected to deploy both technical expertise and capital to advance exploration activities while adhering to international operational standards.

The development comes amid intensified efforts across Africa to secure upstream investment in a competitive global capital environment. It follows a separate agreement with Shell, enabling early-stage geological and geophysical surveys across additional offshore acreage, signalling growing industry interest in Sierra Leone’s offshore play.