The Director General of Sierra Leone’s Petroleum Directorate, Foday B. L. Mansaray, has revealed that the country’s exploration agenda seeks to develop its hydrocarbon-rich, ultra-deep basin, following the ongoing fifth licensing round that was launched in May 2022. The Director General spoke in an exclusive interview with the African Energy Chamber on the country’s latest oil and gas developments.
"Sierra Leone is still a nation in its infancy, and we want to get to a stage where we can commercialize our oil and gas reserves. Over the past years, we have managed to streamline the application process for conducting exploration work. So far, we have a Nigerian independent in our basin, which, in its first evaluation conducted last year, highlighted gas prospects. With an energy transition taking center stage, having gas in our energy mix will be crucial in driving energy security and sustainability," Mansaray unveiled.
The Director General, while responding to issues around the fifth licensing round, said, "The licensing round closes at the end of September and has been an excellent round with very strong interest from majors, IOCs, and independents that have already looked at our data and are conducting data and financial evaluation. Sierra Leone has 56 glaciers and 63,000 km2 of an area on offer, along with its hydrocarbon-rich, ultra-deep basins, through direct negotiations."
"Our whole basin is covered in 3D and 2D data, necessitating a better foundation for companies to advance and accelerate exploration." "As a nation, we want to work with technically sound companies, especially those that can drill and have the capacity to advance our exploration agenda."
"The conversation around energy transition is shifting slightly as a result of the major companies that have approached us to participate. We have reduced the red tape for companies to come in with straightforward terms. Sierra Leone has only three non-negotiable terms, including a corporate income tax of 25 percent, a 10 percent royalty for oil and a 5 percent royalty for gas, and a petroleum resources tax," the Director General confirmed.
Mr. Mansaray assured that "the barriers to entry are shallow." "The period from application to ratification is 85 days, hence we have heavily improved our application period, and we are also positioned within the Office of the President and are very quick and nimble at making decisions."
"Sierra Leone is very active in attracting investments and promoting opportunities within the country. We are not just waiting for investments to come to us; we are going where they are. We had very fruitful meetings and conversations with companies in Qatar around natural gas, and we will be chatting with two Italian IOCs. The industry is competitive, and we need to be actively seeking investors," he said.
Director General of Sierra Leone’s Petroleum Directorate, Foday B. L. Mansaray
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