Sierra Leone has taken a bold step into its energy future after finalising a $225 million offshore petroleum agreement with Nigeria’s Marginal Energy Limited. The deal marks one of the country’s most significant moves in recent years to attract foreign investment into its under-explored oil and gas sector.
The government signed the agreement through the Petroleum Directorate of Sierra Leone, granting Marginal Energy exploration and production rights across offshore blocks G-145, G-146, G-147, G-160, and G-161. Together, these blocks cover about 6,800 square kilometres of offshore territory, opening a new chapter for exploration activity in the country’s frontier basin.
Marginal Energy, a Nigerian independent oil company, has already committed to an extensive seismic and drilling programme. The company expects total exploration spending to rise above $225 million, a move that signals strong investor confidence in Sierra Leone’s offshore potential and West Africa’s broader energy landscape.
Under the terms of the agreement, the Sierra Leone government will retain a 10% carried interest in oil projects and a 5% stake in gas operations during exploration and development. In addition, the state can increase its participation by up to 9% once commercial production begins, giving it a stronger long-term position in future revenue streams.
Officials signed the deal at the Invest in African Energy conference in Paris, where Sierra Leone actively promoted its offshore licensing opportunities to global investors. The country used the platform to highlight its improved geological data and renewed focus on energy development.
President Julius Maada Bio described the agreement as a major milestone in Sierra Leone’s economic strategy. He said the deal reflects the government’s commitment to unlocking natural resources while ensuring national benefit and long-term development.
Furthermore, Sierra Leone continues to prepare a new offshore licensing round supported by updated seismic data. This initiative aims to revive exploration interest and position the country as a competitive destination for oil and gas investment in West Africa.
The partnership with Marginal Energy also highlights growing energy collaboration between African nations, especially as Nigeria’s private energy firms expand their footprint across the continent. Analysts believe this deal could reshape investor confidence in Sierra Leone’s upstream sector.
