Can you introduce the Petroleum Directorate of Sierra Leone (PDSL) and outline its mandate?

The PDSL is responsible for overseeing oil and gas activities for the state. We facilitate licensing rounds, attract foreign investment, and promote the country's hydrocarbon sector. We believe we have significant reserves: 44 billion barrels of oil in place, with 10 to 15 billion recoverable. Ensuring energy access is crucial, and we aim to combat energy poverty locally and contribute to Africa's broader energy security. Currently, our hydrocarbon activities are entirely offshore. Exploration began in the 1980s, leading to eight wells being drilled and four discoveries made, notably the Mercury well. Historically, Sierra Leone prioritized mining over hydrocarbons. Since 2003, we have conducted five licensing rounds, attracting major companies, particularly after the 2011 jubilee discovery in Ghana. 

What criteria do you look for when trying to attract partners?

We have a clear vision focused on speed and collaboration with partners who share our commitment to technical excellence, environmental stewardship, and societal impact. We seek partners who are aligned with our goals of promoting transparency, reducing bureaucracy, and fostering mutual learning. Our aim is to work closely with companies that understand the complexities of our sector and are willing to collaborate transparently. We prioritize partners who value efficiency and timely decision-making, as evidenced by our streamlined licensing process, which takes only 85 days from the close of the round to license award. By fostering an environment of transparency and reducing red tape, we aim to attract investment and facilitate the timely execution of projects while also meeting our partners' net-zero commitments.

Are you prioritizing local content and promoting local expertise in Sierra Leone's energy sector?

Local content is a cornerstone of our strategy for developing our energy sector. We are formulating an oil and gas master plan to guide sector governance, with a strong emphasis on ensuring local participation and skills transfer, so Sierra Leoneans benefit directly from the industry's development. We are also open to collaboration with neighboring countries to leverage expertise and resources if needed. Recent negotiations with F. A. Oil Limited underscored the importance of local content, with a commitment to sourcing 100% of goods, services and management locally, whenever possible.

What are the primary hurdles to exploration and development in Sierra Leone?

The biggest bottleneck for us currently is the energy transition conversation, which hinders companies from investing in frontier nations like Sierra Leone. In 2020, following the fourth licensing round, we granted a provisional license to a company, but they could not raise funds because banks were unwilling to lend to them. This difficulty stems from the reluctance of IOCs to invest in frontier regions. To address this challenge, we have revamped our strategy to attract companies by improving the ease of doing business in Sierra Leone. This has raised our profile and made us more appealing to potential investors. Additionally, we have observed a shift in attitudes following the Russia-Ukraine conflict; companies show increasing willingness to venture into Africa due to energy constraints elsewhere. Offshore exploration requires substantial capital investments and funding remains a significant challenge. Nevertheless, recent agreements and partnerships, such as high-profile investments from Nigeria, demonstrate progress and potential for growth in our industry. 

How can we transition away from hydrocarbons while ensuring energy security for everyone?

We need to ensure that as we move towards cleaner energy sources, everyone has access to reliable energy. This involves investing in technologies like carbon capture and exploring alternative energy sources. However, it is crucial to recognize the importance of hydrocarbons in addressing immediate energy needs, especially in countries like Sierra Leone where energy poverty is prevalent. The conversation should focus on how to clean up the hydrocarbon sector while working towards sustainable energy solutions.

What is the PDSL’s strategic outlook for the next few years? 

Our strategy is multi-faceted. We aim to attract more companies to invest in Sierra Leone's energy sector. With our extensive seismic and well data, including over 11,000 km2 of 3D and 16,009 km2 of 2D data, we seek to market these resources globally to entice investors. Additionally, we plan to reprocess our existing data to provide a more up-to-date and comprehensive picture of our hydrocarbon potential, thereby attracting a wider range of companies.