Sierra Leone Signs $225 Million Offshore Oil Deal with Marginal Energy to Boost Exploration

Sierra Leone has taken a major step toward revitalizing its oil and gas industry, signing a $225 million offshore exploration and production agreement with Nigeria-based Marginal Energy Limited. The deal signals renewed momentum in the country’s long-standing ambition to become a significant oil-producing nation, while also highlighting growing cross-border investments among African energy firms.

The agreement was formalized at the Invest in African Energy Conference in Paris, where Sierra Leone has been actively pitching its offshore assets to global investors. The licence, awarded through the country’s Petroleum Directorate, covers five offshore blocks—G-145, G-146, G-147, G-160, and G-161—spanning approximately 6,800 square kilometres in a largely underexplored basin now being repositioned as a frontier for energy investment.

Under the terms of the deal, Marginal Energy will undertake extensive seismic surveys and drilling activities, with total exploration spending expected to exceed $225 million. The financial structure is designed to benefit Sierra Leone without immediate fiscal pressure, as the government will hold a 10% carried interest in oil projects and 5% in gas, with an option to increase its stake by up to an additional 9% once production begins.

President Julius Maada Bio described the agreement as a clear signal of Sierra Leone’s commitment to unlocking its petroleum potential in a way that delivers value for its citizens. The country has struggled for decades to develop its oil resources despite early discoveries in the 1980s, but recent regulatory reforms and new seismic data initiatives are beginning to attract renewed investor interest.

The deal also reflects a broader shift within Africa’s energy landscape, where indigenous companies are expanding beyond their home markets. Firms like Oando are already extending operations into countries such as Angola, Ghana, and Ivory Coast, while industrial players like Aliko Dangote are pursuing large-scale energy projects across the continent. Together, these moves underscore a growing trend of African-led investment driving the next phase of oil and gas development across the region.

source: Nairametrics