By Ishmael Sallieu Koroma
At the just concluded AEW Week 2024 Sierra Leone’s Petroleum Director General Foday B. L Mansaray showcased the country’s petroleum potential to investors. Created in 2003 by the Sierra Leone government, the Petroleum Directorate in the small West African nation is responsible for managing and monitoring of petroleum resources in the country. PAV caught up with Director General Foday Mansaray for his take on AEW 2024, developments, and opportunities in Sierra Leone.
How did Africa Energy Week 2024 go for the Petroleum Directorate of Sierra Leone?
At AEW 2024, PDSL capitalised on a unique opportunity to showcase the country’s vast oil and gas potential to an international audience. Following its successful fifth licensing round in October 2023, Sierra Leone offered 56 offshore exploration blocks and saw active interest from investors. Three companies were prequalified as operators, including Nigeria’s F.A. Oil Limited, which secured six exploration licenses, indicating renewed international confidence in Sierra Leone’s oil and gas potential.
During AEW, PDSL highlighted Sierra Leone’s extensive 3D seismic data, which includes over 10,000 square kilometres of multi-client data, which will be reprocessed by TGS. This reprocessed data is expected to bolster exploration activities in the country’s largely untapped offshore acreage, which already hosts notable discoveries. The government emphasised the country’s favourable fiscal policies aimed at supporting a business-friendly climate for foreign investment.
By presenting these updates, PDSL sought to draw further interest from stakeholders across the oil and gas sector, positioning Sierra Leone as a promising frontier market for future oil and gas developments.
What was the nature of your participation, any speeches or panels you were part of and what message did you seek to convey?
I was on a panel discussion titled “Navigating Uncharted Territory – Africa’s Offshore and Deep water Exploration Plays”, whilst the PDSL team showcased the investment opportunities in Sierra Leone’s Oil & Gas sector, exploration updates, and the country’s vision for sustainable energy development.
PDSL’s focus at AEW 2024 was on showcasing Sierra Leone as an emerging frontier in oil and gas following the successful completion of its fifth licensing round.
Key points that we emphasised included:
- Highlighting Investment Potential: Emphasizing the favourable conditions for investment, such as competitive regulatory and fiscal policies aimed at attracting foreign investors. This included promoting the 50 offshore blocks available for exploration and the extensive 3D seismic data covering over 10,000 km².
- Focus on Sustainability and Partnerships: Stressing Sierra Leone’s Commitment to sustainable development and forging strategic partnerships to enhance the country’s oil and gas infrastructure, in line with global energy transition goals.
- Encouraging Collaboration: Inviting international operators, financiers, and technology providers to collaborate in tapping Sierra Leone’s potential, which could drive economic growth and energy security in the region.
And in terms of reception, how did the audience or participants respond to Updates from the Directorate? PDSL’s participation at AEW 2024 was met with significant interest and positive reception from attendees, particularly due to the nation’s recent advancements in its oil and gas sector. We emphasised Sierra Leone’s commitment to creating a favourable investment climate backed by competitive regulatory frameworks, attractive fiscal terms, and substantial offshore potential. The Directorate showcased opportunities within its upstream sector, particularly following the success of its fifth licensing round. - Participants at AEW were especially engaged with updates about Sierra Leone’s exploration potential, including the four notable discoveries in its waters and the large volume of seismic data available for new investments. The Directorate’s approach to reducing licensing timelines and fostering regional partnerships, such as collaboration on the Africa Atlantic Gas Pipeline Project, resonated well with attendees, who recognized the potential for Sierra Leone to become a strategic player in Africa’s energy landscape.
This momentum has positioned the Directorate as a proactive leader in attracting global oil and gas investment, with AEW serving as an ideal platform to highlight these developments.
- How important are events like the AEW in helping you market the potential of Sierra Leone and any success so far in getting credible companies Interested?
Events like AEW are vital for PDSL to market the nation’s oil and gas potential to a global audience. AEW offers a unique platform for Sierra Leone to present its recent achievements, such as its fifth licensing round and seismic data availability and reprocessing by TGS, the prospectivity studies being carried out by PVE Consulting, directly to potential investors, government officials, and stakeholders in the oil and gas sector. This exposure helps attract credible E&P companies interested in entering frontier markets with promising opportunities.
Overall, AEW has helped Sierra Leone bolster its visibility and credibility, encouraging foreign companies to consider investment. This type of networking and exposure is essential for attracting long-term partnerships and fostering an environment where international firms feel confident exploring and developing Sierra Leone’s offshore resources.
With all the outreach and networks, you have been building, at what point Should Sierra Leone see tangible results?
Sierra Leone should start seeing tangible results from its oil and gas sector outreach within a few years, particularly if current partnerships and investments continue to develop as anticipated. The timeline for achieving concrete outcomes in the oil and gas industry typically depends on factors like exploration, drilling, and the regulatory environment.
- Exploration and Drilling: Since Sierra Leone’s offshore sector remains largely underexplored; the initial phase will involve substantial seismic data acquisition and analysis, exploration drilling, and feasibility studies. With the recent licensing round concluded and credible companies, such as F.A. Oil Limited, already on board, exploratory drilling could yield discoveries within the next 2-5 years, setting the stage for development and production.
- Regulatory and Infrastructure Development: The government’s commitment to a streamlined licensing approval process and a favourable regulatory framework should expedite the initial phases of project development. However, any significant discovery would require infrastructure development, such as pipelines or processing facilities, which might extend the timeline by another few years depending on logistical and financial resources.
- Economic Impact and Revenues: Should exploration lead to commercial production, Sierra Leone could begin to see economic benefits in the form of job creation, infrastructure investment, and direct revenues within a decade. The tax and royalty structures, including a 25% corporate income tax and royalties on oil and gas, are designed to ensure that the country gains revenue from successful projects.
- In short, while early exploration and investment might show preliminary results within the next few years, tangible economic benefits—like production and revenue generation—are likely to materialise in the medium to long term. AEW and similar events play a crucial role in accelerating this process by establishing relationships and building investor confidence.
- To companies and potential partners out there who want to know the potential Sierra Leone has, do you want to share some insights on that?
Sierra Leone holds significant untapped potential in its oil and gas sector, especially offshore, where much of its resources remain underexplored. Key insights that might appeal to companies and potential partners are:
- Underexplored Basins with High Potential: Sierra Leone’s offshore area is considered a frontier market with a working petroleum system, demonstrated by past discoveries made by companies like Anadarko and Lukoil. Out of only eight wells drilled, four led to discoveries, highlighting the potential for more substantial finds. The country’s available blocks are estimated to hold considerable hydrocarbon potential, making it an attractive opportunity for exploration and production companies.
- Extensive 3D Seismic Data: PDSL has invested in gathering and promoting seismic data, with over 10,000 km² of multi-client 3D seismic data now available. This existing data and potential for new 3D acquisition will help reduce the exploration risk, allowing companies to make more informed decisions and better assess prospects. Together with TGS, we have commenced a project to reprocess our existing 3D seismic data, which we anticipate completing in early Q2 of 2025.
- Together with PVE Consulting, we have also commenced a basin-wide prospectivity studies aimed at further de-risking our prospects, which will be completed in January 2025.
- Favourable Investment Climate: Sierra Leone has enacted competitive fiscal policies to attract foreign investment. These include a 25% corporate income tax rate, favourable royalty structures, and a petroleum resources tax designed to ensure fair returns for both investors and the government.
Additionally, the government has committed to streamlining the licensing approval process, reducing timelines for approvals and contracts to 85 Calendar days, which is especially valuable in an industry where regulatory delays can be costly. - Supportive Regional Partnerships: Sierra Leone is also leveraging regional partnerships to integrate its resources with broader African markets. For instance, Sierra Leone has collaborative MOUs with ANPG ONHYM, GNPC-Ghana, GNPC-Gambia and the Ministry of Mines and Hydrocarbons of Equatorial Guinea.
- Commitment to Sustainable Development: Sierra Leone is taking steps to ensure that its oil and gas sector growth aligns with sustainable development goals, which is increasingly important for international investors mindful of environmental and social governance standards.
- In summary, Sierra Leone offers a rare opportunity for companies seeking high potential, early-stage investments in a frontier market. The combination of underexplored basins, supportive policies, and a commitment to sustainability makes Sierra Leone a promising partner in the African oil and gas sector.
- Next year, the AEW will clock five, is it safe to say you and the Directorate will be present?
- PDSL has built an excellent relationship with the AEW team over the years, which we believe will continue to strengthen. We proudly list AEW as one of our strategic partners and it is safe to say that PDSL will participate at AEW 2025.
AEW has become the premier gathering for African energy stakeholders, creating valuable networking and investment opportunities for countries like Sierra Leone seeking to boost visibility and attract credible partners in the oil and gas industry.
Given the positive response and interest generated by PDSL’s participation in AEW over the years, a continued presence would reinforce Sierra Leone’s commitment to its oil and gas sector development. Additionally, AEW 2025 will offer an opportunity to update potential investors on any progress from exploration activities and further strengthen relationships with companies engaged in Sierra Leone’s offshore exploration blocks.
If PDSL continues building on its recent momentum, AEW 2025 could be an ideal platform to secure additional partnerships and showcase results from on-going initiatives. This consistent engagement with the international energy community can help position Sierra Leone as a key player in the African oil and gas landscape.
*Courtesy of November Issue of PAV Magazine
