By Ajong Mbapndah L
Sierra Leone could be the next possible hotspot in Oil and Gas production in Africa, says Foday Mansaray Director General of the Petroleum Directorate of Sierra Leone. Speaking in an interview with PAV, Mansaray says Sierra Leone is already saturated with both the above-ground and below-ground conditions that will guarantee investors’ returns with key comparative advantages including a working petroleum system with a verifiable discovery record, a peaceful atmosphere characterised by good governance and solid democratic credentials.
According to Mansaray investors will be well served in Sierra Leone with its deliberate policy measures aimed at enhancing the ‘ease of doing business, an investment-oriented fiscal regime that is unparalleled in the Gulf of Guinea, the use of a freely convertible currency, unconditional transfer of funds, protection against expropriation and related losses, immediate amortisation of pre-production exploration expenditure, and duty-free concessions on machinery, plant and other equipment used for the conduct of exploration operations.
“The investment climate in Sierra Leone is becoming more attractive, especially in the oil and gas sector, where the Petroleum Directorate is playing an active role in offering incentives, providing geological data, and fostering transparent regulatory frameworks. The country’s untapped resource potential, competitive fiscal terms, and support for investment in exploration make it a compelling frontier market for the right investors,” says Foday Mansaray.
Expected in Cape Town South Africa for the 4th edition of the African Energy Week running from Nov 4- 8, Mansaray says the forum as well as other diverse programs of the African Energy Chamber have been instrumental in providing the ideal platform for Sierra Leone to market its potentials to wider audience at a relatively lower cost.
Could we start with an introduction to the Petroleum Directorate of Sierra Leone and its core mission?
The Petroleum Directorate is the key public agency created to regulate the Oil and Gas industry, following the onset of the second wave of oil and gas exploration activities at the end of the civil conflict in Sierra Leone. It was created by the Petroleum Exploration and Production Act of 2011, to replace its predecessor which had created the erstwhile Petroleum Resources Unit.
The need for this regulatory response was prompted in part by the increasing significance of the basin for Oil and Gas exploration by the end of the initial decade of this millennium, as well as the progressive accumulation of regulatory knowledge and experience, which were lacking when the regulatory institution was initially created under the previous statute.
The core mission of the institution has been to ensure that oil and gas exploration activities are conducted in a safe, sustainable, technically feasible, environmentally sound and socially responsible manner, bearing in mind the need for a win-win outcome between the investor and the host Nation-including current and future generations.
From the findings over the years, any idea about the Oil and Gas potential in Sierra Leone?
Eight offshore wells have so far been drilled of which four successive discoveries were made between 2009 and 2013. In as much as none of these were declared as commercial discoveries, the drilling outcomes amounted to geological success stories as they indicate a working petroleum system in the basin.
Moreso, since commercial discovery is a function among others, of the per barrel price of crude, the drilling environment, whether offshore or onshore, whether shallow, deep or ultra deep for offshore environments, which in combination determine the Capex and Opex, has been postulated by subject matter experts that if the discoveries so far made were onshore discoveries, the country would have accomplished commercial discovery, implying that Sierra Leone could have been on record as a producer and/or exporter of crude oil. And that’s why frantic efforts have been geared towards expanding the exploration space to the onshore/terrestrial environment.
May we know the investment opportunities that are available in the sector and the responses you are getting from investors?
Substantial investment opportunities abound in Sierra Leone’s Oil and Gas exploration landscape. Apart from the offshore Oil and Gas potential, in respect of which substantial quantities of related 2-D and 3-D data sets are available, enormous potential exists also in the onshore zone as stated earlier, and actions by the Directorate have included the acquisition of appropriate quantities of aeromagnetic and gravity data potential investors will need to determine the prevalence of ideal subsurface structures.
Other deliberate investment-friendly policy measures at the macro level include a predictable regulatory regime, enhanced security of tenure, the use of freely convertible currency, non-restriction of remittance repatriation, etc.
The response from the investment community has been very positive if one were to judge from the frequency of Data Room Visits and expressions of interest for Oil and Gas Exploration concession. However, these expressions are yet to be fully translated into tangible Licence agreements. That’s why the Directorate has been working towards an enhanced marketing strategy and putting in place an appropriate de-risking plan of action that will include the conduct of additional studies and surveys and reprocessing of our 3D seismic data to expand the scope of prevailing knowledge of the basin.
Any big-name players in the sector showing interest that you may want to share with us?
Of course! Big Players have shown up in the Directorate’s Data Room maintained in London and Houston, as well as tendered their initial expressions of interest. However, it may not be appropriate for names to be made public at this point in time since such interests have not yet graduated into actual Oil and Gas Exploration Licences, as noted earlier. Second and more crucially, some operators do not prefer their strategic moves to be in the public domain until they become absolutely ‘need-driven’ and ‘timely’ in their estimation. I therefore assure you that such names will be out at the right time.
How friendly is the investment climate in Sierra Leone and what other incentives does the Directorate have in place to bring in more investors?
For the Petroleum Directorate of Sierra Leone, continuing to improve transparency, infrastructure, and governance, while offering competitive fiscal terms and incentives, will be key to sustaining investor interest and growing the sector responsibly.
What kind of support have you and the Directorate received from the government of President Maada Bio?
The support and patronage of the Government generally and the Office of the President in particular have been and continue to be crucial for timely goal achievement at the Directorate. Fortunately, support from the presidency has been tremendous to the extent that the lead time between receipt of Applications and award or grant of Licenses for instance, has been reduced to 85 Calendar days.
Furthermore, the uninterrupted implementation of the Directorate’s outreach activities and aggressive marketing campaigns could not have been possible without such patronage and cooperation. Thankfully, placing this strategic agency directly under the Office of the President was a well-thought-out idea, and which continues to stand the test of time.
May I therefore use the occasion to appreciate the Office of the President for the guidance and continued support, particularly towards the greater functional autonomy of the Directorate, deemed an imperative for efficiency gains, and which is consistent with its Vision to become a high-reliability regulatory agency capable of sustainably delivering on its core mandate within recorded time.
Goal achievement also depends on the timely support and cooperation of other stake-holding entities, prime amongst which are the Ministry of Finance and the Office of the Attorney General and Minister of Justice.
You will be attending the 2024 African Energy Week in Cape Town, what is the message and sales pitch that you will be taking there?
Indeed, I intend to attend the 2024 AEW in Cape Town, all things being equal. The message and sales pitch that I will be taking along will be that Sierra Leone could be the next possible hotspot in Oil and Gas production! Sierra Leone is already saturated with both the above-ground and below-ground conditions that will guarantee investors’ returns: its key comparative advantages include working petroleum system with verifiable discovery record, a peaceful atmosphere characterised by good governance and related democratic credentials, deliberate policy measures aimed at enhancing the ‘ease of doing business’ index, investment-oriented fiscal regime that can be stabilised, and hence, unparalleled in the Gulf of Guinea, the use of freely convertible currency and unconditional transfer of funds, protection against expropriation and related losses, immediate amortisation of pre-production exploration expenditure, duty-free concession on machinery, plant and other equipment used for the conduct of exploration operations, etc.
How helpful have previous editions of the African Energy Week and African Energy Chamber events been in helping the Directorate achieve its objectives?
The AEW has been tremendously helpful in the creation of an ideal platform with prospects for the longer-term partnership creation. It has represented a stage where the presence of everyone who is anyone in the Oil and Gas industry can be felt. In the process, resource-constrained regulatory agencies and/or national Oil Companies have discovered in the ‘one-stop shopping centre’ of AEW a niche for optimisation of their outreach activities to a wider audience at a relatively lower cost, compared to the option of industry consultations at the comfort zones of specific members of the wider Oil and Gas investment community.
With the vast experiences that you have, what is your broader read of the energy landscape across the continent, and how is the debate on fossils vs renewables impacting your work and vision at the Petroleum Directorate of Sierra Leone?
Africa’s energy landscape is a dynamic and evolving space, shaped by diverse factors such as energy poverty, economic growth, access to resources, and the global transition towards cleaner energy sources. The continent is rich in both fossil fuels as well as renewable energy resources.
Africa is home to significant reserves of fossil fuels and oil and gas remain critical for revenue generation, job creation, and infrastructure development. Many of our African economies still heavily depend on fossil fuel exports, making them vulnerable to fluctuating oil prices and geopolitical pressures. However, domestic consumption is often limited, and energy access remains a challenge for hundreds of millions.
While there is a growing push for renewables, transitioning from fossil fuels is complex. Many African nations, particularly those reliant on oil exports, face the dilemma of balancing their economic dependence on fossil fuel revenues with the global shift towards decarbonization. Stranded assets, underdeveloped infrastructure, and financial constraints further complicate the transition.
In the context of the PDSL, this global fossil fuel vs. renewables debate likely plays a crucial role in shaping strategy and policy. Sierra Leone, like many resource-rich but underdeveloped nations, faces a unique energy dilemma.
We have been exploring our offshore oil potential, which, if realised, could provide a significant boost to the country’s economy. However, the global transition towards clean energy may impact the long-term viability of new fossil fuel projects. Major international companies are becoming more selective about new oil exploration ventures due to mounting environmental pressures and investor demands for sustainable practices.
The interplay between fossil fuel exploration and the push for sustainability may impact decisions related to how resources are explored, managed, and developed—particularly in attracting IOCs who are themselves navigating the transition to a low-carbon future. Fostering collaboration in this space could involve aligning exploration activities with global best practices in environmental protection, emissions reductions, and responsible resource management.
