Freetown, 23rd April, 2026- Sierra Leone has taken another bold step toward unlocking its offshore petroleum potential, signing a Petroleum Licence Agreement (PLA) with Nigerian-based Marginal Energy Limited. The deal, announced at the Invest in African Energy Conference in Paris, grants the company exclusive rights to explore, develop, and produce hydrocarbons across five offshore blocks covering 6,800 square kilometres.
The licence, formally registered as Petroleum Licence No. 002/26, sets out a full-cycle upstream programme including seismic surveys, advanced geoscience studies, and drilling commitments. Marginal Energy has pledged to invest more than US$225 million during the exploration phases, under a framework designed to balance investor returns with national benefit.
Key fiscal terms include a 10% state carried interest in oil projects and 5% in gas, royalties of 10% for oil and 5% for gas, and an option for Sierra Leone to acquire up to an additional 9% participating interest during development and production. The agreement also embeds provisions for local content, environmental safeguards, technology transfer, and capacity building.
President Julius Maada Bio hailed the agreement as a milestone in Sierra Leone’s energy journey. “This Agreement reflects our government’s unwavering commitment to responsibly harnessing Sierra Leone’s natural resources for sustainable economic transformation. By partnering with credible and capable investors, we are accelerating the development of our petroleum sector while ensuring that the benefits are shared with the people of Sierra Leone,” he said.
Petroleum Directorate Director General Foday B. L. Mansaray emphasized transparency and competitiveness: “This Agreement represents another important step in unlocking Sierra Leone’s offshore potential. It reinforces our commitment to technical excellence in the management of our petroleum resources.”
Marginal Energy’s Executive Director, John Emefienim, pledged the company’s commitment to safety, environmental stewardship, and regulatory compliance. “Our joint efforts promise to unlock significant value and deliver sustainable growth for all stakeholders,” he noted.
Marginal Energy Limited, headquartered in Lagos, brings nearly two decades of operational experience across the Niger Delta and other emerging markets. Its portfolio includes offshore licences and the Shango Field, where it is advancing a phased development programme. The company combines upstream expertise with downstream trading, positioning itself as a credible indigenous partner for frontier exploration.
The agreement is subject to ratification by Sierra Leone’s Parliament, in line with constitutional requirements. It forms part of a broader national strategy to revitalize upstream exploration following recent advances in seismic data acquisition and basin analysis.
