Foday Mansaray II, Director General of the Petroleum Directorate of Sierra Leone, will speak at the 2024 edition of the African Energy Week (AEW): Invest in African Energy conference that is set to happen in Cape Town from 4-8 November
Mansaray will showcase investment and partnership opportunities available across the west African country’s upstream sector. Last year, he mentioned how the country is seeking out investors.
Sierra Leone’s basins offer substantial opportunities for frontier E&P players. The country has witnessed four significant discoveries to date, despite having only drilled eight wells country-wide. Made by Anadarko (Venus-B1, Mercury-1 and Jupiter-1) and Lukoil (Savannah-1X), these finds are currently awaiting development and commercialization. During AEW: Invest in African Energy, Mansaray is expected to provide an update on ongoing drilling activities as well as the competitiveness of Sierra Leone’s upstream market.
As part of its fifth licensing round – concluded in 2023 – Sierra Leone awarded six offshore oil blocks to Nigerian exploration firm Famfa Oil Limited, showcasing its commitment to unlocking its hydrocarbon potential while opening new investment opportunities for global investors. The licensing round offered more than 63,000 sq km of highly prospective acreage comprising 56 blocks.
Partnering with upstream entities
Sierra Leone is optimising concession terms and establishing new partnerships with global upstream entities. The country has introduced favorable tax terms, including a 25% corporate income tax, 10% royalty fee for oil, 5% royalty fee for gas, and a petroleum resources tax, to create an investor-friendly environment. Furthermore, the country is reducing permitting and contracting time to expedite industry expansion.
Sierra Leone is also prioritising collaboration with regional stakeholders to integrate its oil and gas industry with the West African market. In 2022, the country signed an agreement with the Nigerian National Petroleum Corporation to leverage the Nigeria-Morocco Pipeline, demonstrating its commitment to harnessing regional energy resources for local consumption and international trade.
