Sierra Leone

SIERRA LEONE TO FOCUS ON OFFSHORE PROSPECTS

Sierra Leone, and neighbouring Liberia, are looking to reignite the exploration sector with new offshore licensing rounds. Two companies are now gearing up to explore 24 blocks off the coast of Sierra Leone after the government made a fast decision. Georgia Lewis reports.

IN APRIL, IT was announced that six companies submitted bids for five offshore concessions off the coast of Sierra Leone. This was the West African country’s fourth petroleum licensing round, a process which began in January 2018. In an April 15 statement, the Petroleum Directorate committed to “delivering an impartial and fast-tracked evaluation of the bids and will announce the results as soon as it is able”.

Fifteen days later, the government announced provisional results of the bidding with UK-based Cluff Energy Africa being awarded 15 blocks and Nigeria-based Innoson Oil and Gas being awarded nine blocks across the concessions.

Algy Cluff, Cluff ’s CEO, commented “Needless to say, we are pleased with the results of the Fourth Offshore Petroleum Licensing Round in Sierra Leone.

We are pleased with the results and look forward to working with the Petroleum Directorate to complete the negotiations process.”

I compliment the government of Sierra Leone on conducting such a thorough licensing round.”

“We look forward to working with the Petroleum Directorate to complete the negotiations process and begin exploration work on these exciting, prospective blocks,” Mr Cluff added.

Previously, low-key offshore exploration attempts in decades gone by produced mixed results, but with enough shows to create a sense of optimism surrounding the latest ventures. Between 1982 and 2009, only eight offshore wells were drilled but oil shows were found. Anadarko drilled three more wells between 2009

and 2021 and Lukoil made a further discovery in 2013.

The latest Sierra Leonean bidding rounds are part of a busy time for exploration in the region, with neighbouring Liberia launching the Harper Basin licensing round on April 10, which covers nine blocks in the country’s western offshore zone. Previous exploration attempts off the coast of Liberia have not proven to be commercially viable and in 2015, the government had to lay off all national oil company staff, so the pressure will be on successful bidders to discover potentially transformative hydrocarbons.

Elsewhere in the petroleum sector of the two countries, Total signed an agreement in April to sell its marketing and services businesses in Sierra Leone and Liberia. The businesses were sold to Conex Oil & Gas Holdings, a regional player in the West African petroleum products importing, distribution and supply chain sectors. Conex has a network of 63 service stations, general trade fuel sales, petroleum products importing services and storage operations.

“These sales will contribute to Total’s ongoing divestment programme and demonstrate our ability to relentlessly highgrade our portfolio,” said Jean-Pierre Sbraire, Total’s CFO. “In the current context of low oil prices, these transactions support the action plan announced to weather the crisis.” 

Could 2020 be the year that Sierra Leone finally realises its offshore hydrocarbons potential?