Following the successful conclusion of its fifth licensing round, the Petroleum Directorate of Sierra Leone (PDSL) is now set to enter negotiations with three qualified companies that have been selected and which have all prequalified for exploration and production licenses as operators.
Speaking during African Energy Week (AEW) 2023, in Cape Town, PDSL Director General Foday Mansary noted that the licensing round, which concluded in September, attracted applications from a diverse range of oil and gas companies. “After a rigorous evaluation process, we now plan to commence negotiations at the beginning of November,” he highlighted.
PDSL aims to finalize the reward of all licenses by the end of this year, signalling an exciting new chapter in Sierra Leone’s energy sector. “We are quite efficient in what we offer and we have streamlined our operations to take 85 business days to complete,” he noted.
PDSL’s exploration history showcases the nation’s potential, with eight wells drilled and four significant discoveries, including the notable Mercury 1 well, Venue B1, Jupiter 1, and Savannah 1X. These discoveries underscore the vast opportunities awaiting investors in Sierra Leone’s petroleum sector.
The licensing initiative offered 150 particular blocks, each spanning approximately 1,360 km2. PDSL is opening its doors to potential investors, inviting them to explore the wealth of data available, including 2D seismic data covering 16,000 linear kilometres and 3D seismic data encompassing 11,000 km2 across the entire basin.
“We believe in the untapped potential of Sierra Leone’s oil and gas resources,” said Mansaray. “Our streamlined, efficient process, coupled with our rich geological prospects, makes Sierra Leone the next hotspot in oil and gas production. We invite reputable investors to join us in this exciting journey.”
PDSL’s licensing is not just an opportunity; it is an invitation to engage in a transparent, flexible, and mutually beneficial partnership. The Directorate encourages potential investors to apply as operators and assures them of a supportive environment, including negotiations for paid interest upon discovery. Moreover, PDSL is working on legislation to facilitate onshore operations, demonstrating its commitment to fostering a conducive business environment.
“Investors in Sierra Leone benefit from not only our proven resources and extensive data coverage but also our flexible and competitive regulatory, legal, and fiscal terms,” added Mansaray. “We want investors to thrive, and we are willing to negotiate in good faith to ensure success for all parties involved.”
Investors are invited to explore the vast potential of the nation’s oil and gas sector. “PDSL stands ready to facilitate partnerships, driving exploration and contributing to the nation’s economic growth,” Mansaray concluded.
#AEW2023 takes place this week in Cape Town under a mandate to make energy poverty history by 2030. Keep following www.aecweek.com for information and updates about Africa’s premier energy event.
