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In this interview, Director General of The Petroleum Directorate of Sierra Leone (PDSL), Mr. Foday Mansaray, discusses the announcement of the nation’s newest and most exciting Licensing Round and the potential to explore for oil and gas in Sierra Leone. What is the current state of the 5th Offshore Licensing Round and what can you tell us about the prequalified companies and the opportunities they bring to Sierra Leone? Sierra Leone’s 5th Offshore Licensing Round was officially launched on 18 May 2022 during the African Energy Summit at the Mayfair Hotel in London. The Licensing Round will close on 30 September 2022 during which all interested companies are expected to submit their bids. Prequalified companies will be issued a ‘Notice of Qualification’ and subsequently be invited for negotiations. Having officially launched on 18 May 2002, we have only just completed a comprehensive list of international oil companies (IOCs) who have been ‘Specially Invited’ to apply for prequalification, where The Petroleum Directorate of Sierra Leone (PDSL) assesses their complete financial, technical and HSE capabilities. This list has been compiled taking cognisance of the IOCs’ global reputation and operational history. We are very optimistic of forming a long-lasting partnership between Sierra Leone and any number of these companies. As we speak, we have received applications from 3 companies; anything decided in the meantime will be communicated to the oil and gas community at the conclusion of the Licensing Round, post 30 September 2022. What are the steps set by PDSL that a bidder must follow in order to participate, specifically with regards to in-country regulation? There are 10 very simple and transparent steps that we have devised for companies to follow. We anticipate that it will take 85 calendar days from application to the ratification of a license. The process would follow the following steps: ● Pre-qualification: a given IOC will submit a formal application for pre-qualification that includes their Work Program, Technical and Financial Capabilities, Health, Safety & Environmental Policies and Corporate Social Responsibility Plan; all must be submitted with supporting documents;● PDSL will evaluate the IOC’s application and then issue a ‘Notice of Qualification’ for the 5th Licensing Round within 10 Business Days;● PDSL will invite the IOC for negotiations;● A Provisional License will be granted to the IOC, upon successful negotiations;● The IOC will either accept, or decline, the Provisional License;● If accepted, a Draft Petroleum Agreement is sent to the IOC for ‘No Objection’;● The Draft Petroleum Agreement is sent to the Ministry of Finance, the Attorney General & The Ministry of Justice for ‘No Objection’;● PDSL and the IOC sign the Petroleum Agreement;● The Petroleum Agreement is sent to Parliament for ratification;● The Parliament ratifies the Petroleum Agreement. What effect has the Licensing Round, including fiscal terms and company benefits offered, had in the successful promotion of Sierra Leone and its energy market? The Licensing Round has showcased Sierra Leone’s competitive fiscal terms and predictable regulatory framework, which has attracted interest from various IOCs. The feedback we have received thus far has been very encouraging and positive, especially around the efficiency, simplicity and transparency of our application and awards process. What is very apparent is that the round’s launch has been timely, as Sierra Leone seeks to fill the energy gap created as a result of the global shortage of access to oil and gas. What is the expected growth for Sierra Leone’s upstream segment, and what recent highlights and milestones can you share with us? I wholeheartedly believe that Sierra Leone is on the cusp of joining other oil and gas producing nations. Given the success story along the conjugate margin in Guyana, it is only a matter of time until Sierra Leone joins this illustrious group. Since April 2021, Innoson Oil and Gas (IOG) has been progressing its exploration work program by conducting comprehensive studies and analysis of our seismic data, coupled with remote sensing studies. Moreover, on 13 May 2022, IOG announced an estimated recoverable resource of 8.2 trillion cubic feet of gas and 234 million barrels of oil in their acreage; IOG’s findings have also been independently corroborated by the Ryder Scott Company. We look forward to the next steps of their work program, which will lead to a drilling campaign in the near future. With a proven working petroleum system with 4 discoveries, from a total of 8 wells drilled throughout its history, we have all the elements required to maintain a petroleum system where hydrocarbons can be found, such as: ● A high-quality mature type-2 source rock with a Hydrogen Index (HI) of 482-795, and a Total Organic Carbon (TOC) of 4-20%. Guyana’s HI and TOC are 450-613 and 4-10% (at Liza-1), respectively;● A migration path;● A reservoir rock;● Stratigraphic and Structural trapping mechanisms; and● Effective seals. All these have been proven in our basin, so we’ll keep a close eye on it. In past years, what binational and private cooperation would you highlight that has brought prosperity to Sierra Leone, and what do you expect to see in the next few years? PDSL has existing bilateral agreements with GNPC in Ghana, as well as the Ministry of Mines and Hydrocarbons of Equatorial Guinea. These agreements will enhance capacity building and enable Sierra Leone’s petroleum sector to learn valuable lessons from these producing nations. We are also currently actively engaged with ANPG, PASA and GNPC-Gambia to create a pathway for collaboration between our nations. I firmly believe that collaboration with like-minded institutions will provide an excellent platform for us during our exploration, development and eventual production. Africa Oil Week’s (AOW) latest edition is scheduled for the first week of October in Cape Town. What does PDSL expect to achieve from its participation? PDSL has been involved in strategic promotion and marketing of Sierra Leone’s potential and petroleum opportunities. We are always on a mission to form strategic partnerships with IOCs who share our vision of transparency, performance-driven attitude, keen sense of collaboration and drive to become a net producer of
From Asia to the US, via India, Turkey, Qatar, Spain and Portugal, Nigeria’s drive for international energy partnerships is limitless. NOG Conference & Exhibition taking place 4 – 7 July 2022 in Abuja, is Nigeria’s foremost energy conference and will review Nigeria’s positioning within the evolving global energy landscape, with a focus on funding and emerging opportunities to transform her energy industry. This has become imperative as the world tiptoes the fragile tightrope of the ‘new different’ reality in the global energy system, Africa, and in particular, her largest economy, Nigeria, has been hit hard but is also at a crossroads of immense potential. Since the inception of the Ukraine crisis, the global economy has been significantly disrupted, leading to surging inflation and a potential food crisis – especially in emerging economies like Nigeria. While global markets have witnessed a surge in oil prices of over $100 per barrel, Nigeria’s oil and gas sector has been unable to boost its reserves – in fact, this loss has been compounded by low oil production hovering at around 1.2 million bpd. Aligning with this position, the theme for the twenty-first edition of the NOG Conference & Exhibition is “Funding The Nigerian Energy Mix For Sustainable Economic Growth” will focus on the strategies that will be employed by the Nigerian government and private sector leaders to navigate the emerging energy business environment – helping to set the nation’s energy agenda for the next 12 months. One of the key opportunities for Nigeria within this dynamic is to expand its gas supply and energy cooperation with the world. The EU, which gets a substantial percentage of its oil and gas from Russia, is seeking alternative sources of energy. With Nigeria already supplying France, Portugal, Spain and Belgium, it is on the radar to also supply other EU nations, particularly as the country is currently working to grow its gas reserves from 206 trillion cubic feet to 600 trillion cubic feet. However, to be in a position to be able to fully meet the EU’s demand, Nigeria needs to develop its infrastructure and increase investment. This is at the core of the various discussion and debates that will be happening at the NOG Conference & Exhibition. Dignitaries participating include H.E. Timipre Sylva Minister of Petroleum Resources, H.E. Otunba Niyi Adebayo, Minister of Industry, Trade & Investment and H.E. Mohammad Sanusi Barkindo, Secretary-General, OPEC.Industry leaders include Sen. Margery Chuba Okadigbo, Chairman-Board of Directors, NNPC, Mele Kolo Kyari, Group Managing Director, NNPC, Richard Kennedy, Chairman & Managing Director, Chevron Nigeria/Mid-Africa Business Unit & Chairman, OPTS, Mike Sangster, Managing Director & Chief Executive, TotalEnergies EP Nigeria Limited, Richard Laing, Chairman & Managing Director, ExxonMobil Affiliate Companies in Nigeria, Osagie Okunbor, Managing Director, The Shell Petroleum Development Company of Nigeria Limited & Country Chair, Shell Companies in Nigeria, Elohor Aiboni, Managing Director, Shell Nigeria’s Exploration and Production Company Limited and Philip Mshelbila, Managing Director & Chief Executive Officer, Nigeria LNG. 2022 sponsors include NNPC, ExxonMobil, Nigeria LNG, Shell, Chevron, TotalEnergies, Oando, IPPG, NUPRC, NCDMB, Prime Atlantic, DCPL, Coleman Cables, UTM Offshore, First E&P, ND Western, Samsung Heavy Industries Nigeria, Montego, Nivafer, RusselSmith, Vurin Group, MG Vowgas Group, West African Ventures, MicCom Cables, Niger Delta E&P, Eleva Group, Heritage Group, Seplat Energy, Banwo & Ighodalo. Various industry stakeholders have named NOG as one of the key events in Nigeria’s energy sector for strategic business planning and decision-making process and are looking forward to the conversations that will shape the nation’s energy agenda for the next 12 months and beyond.
