What has been the PDSL's focus and activity over the past year?

Over the past year, the Directorate has been highly active in reshaping Sierra Leone's upstream energy narrative. A primary focus has been addressing market feedback by introducing new and reprocessed seismic data. This data covers the Vega Prospect, Sierra Leone's most significant single prospect, which is estimated to contain approximately 3 billion barrels of oil. Reprocessing this data is intended to present a fresh value proposition to major IOCs who have previously evaluated the country. 

The Directorate has also supported the entry of F. A. Oil, a Nigerian independent, through the conclusion of the Fifth Licensing Round in October 2023. That company now holds six blocks in the northwestern basin and is undertaking the first new physical 3D seismic acquisition in over a decade, marking a critical step in advancing exploration in uncharted areas.

What geological work has been undertaken to understand Sierra Leone's hydrocarbon potential?

Multiple seismic and prospective studies have been conducted to define the country's offshore potential. PVE Consulting completed a prospectivity study of the newly licensed F.A. Oil acreage and a basin-wide study. From this, 80 prospects have been identified, collectively estimated to contain around 30 billion barrels of recoverable oil. These prospects range across water depths from 1,300 to 3,000 meters. The Vega (or Sylvia) Prospect remains the most prominent, drawing substantial interest from super majors. The Directorate is also looking at broader basin-wide 3D acquisition efforts to de-risk its territory further and attract more serious investment interest from various players.

Has there been a shift in the types of companies showing interest in Sierra Leone?

Names such as Murphy Oil, Shell, Petrobras and Hess have all interacted with the data alongside new independents like F. A. Oil. Visibility, efficiency and transparency in the licensing process have also contributed to building positive momentum and serious interest in Sierra Leone's upstream potential.

What makes Sierra Leone's legal and fiscal framework attractive to investors?

Corporate income tax has been reduced from 30% to 25%, while royalties are 10% for oil and 5% for gas. Agreements typically include stability clauses and align arbitration with English law. The model agreements issued by the Directorate are generally 90% identical to the final contracts signed, with most changes coming at investors' request and handled flexibly. The entire licensing process which takes 85 days, is highly transparent, outlined in a 12-step framework. All associated fees and expectations—including application fees, daily data room charges, signature bonuses, and training funds—are published and accessible online. This structure helps build trust and reduces entry friction for investors.

How has Sierra Leone drawn on regional lessons to shape its approach to the energy sector?

The Directorate actively studies the successes and failures of other regional players to inform its strategy. One key structural decision has been placing the Petroleum Directorate directly under the Office of the President. This decision is intended to reduce bureaucratic delays common in other jurisdictions where ministries often conflict, slowing project approvals. Local content development is also a long-term priority. While full Sierra Leonean ownership of the service sector is not immediately feasible, the Directorate envisions a gradual, strategic increase in national participation. 

How is the Directorate planning for long-term sector growth and sustainability?

The Directorate has developed an oil and gas master plan to guide the sector over the next three decades. This plan details desired outcomes from year one of commercial discovery to year thirty. A key part of this vision is ensuring that Sierra Leoneans—and potentially regional partners—benefit directly from the industry, especially in goods, services, and management. The plan also aligns with global energy transition goals, emphasizing Sierra Leone's potential contribution to net-zero objectives. 

What is the outlook for licensing activity in the coming year?

A new licensing round is strongly under consideration for announcement during Africa Energy Week, depending on the outcomes of ongoing seismic reprocessing and new data acquisition. Although direct negotiations remain an option, as evidenced by recent engagements with independents from Nigeria and Australia, licensing rounds tend to generate greater urgency and broader visibility. The Directorate maintains an open-door policy for direct approaches but is preparing to structure its next formal round based on data readiness and favorable market conditions.