Sierra Leone's Energy Advancements Take Center Stage as Petroleum Directorate of Sierra Leone (PDSL) Joins African Energy Week (AEW) 2025 as Strategic Partner
The Petroleum Directorate of Sierra Leone (PDSL), the government agency overseeing the country's petroleum resources, has joined African Energy Week (AEW): Invest in African Energies 2025 as a Strategic Partner. With AEW: Invest in African Energies serving as the continent's premier platform for investment and energy discussions, PDSL's partnership underscores Sierra Leone's commitment to fostering global partnerships and highlighting its vast potential in the oil and gas industry.
AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit http://www.AECWeek.com for more information about this exciting event.
Sierra Leone's significant offshore oil resources (https://apo-opa.co/42IV4Xq) position the country as an emerging frontier market. The government estimates the country's recoverable oil resources at between 15 and 20 billion barrels of light, sweet crude, with an API ranging from 35 to 42. These factors, along with the country's strategic location, increasing exploration activity and favorable investment climate, make Sierra Leone an attractive market for global investors.
While Sierra Leone remains a frontier exploration market, it has already made notable progress, with four significant discoveries by Anadarko and Lukoil. These include the Venus-B1, Mercury-1, and Jupiter-1 by Anadarko, and the Savannah-1X by Lukoil. Additionally, Sierra Leone offers extensive 2D and 3D multi-client seismic data, facilitating further exploration.
As part of its fifth licensing round (https://apo-opa.co/4hNQP18)– concluded in September 2023 – Sierra Leone awarded six offshore oil blocks to Nigerian exploration firm F.A. Oil, showcasing its commitment to unlocking its hydrocarbon potential while opening new investment opportunities for global investors. The licensing round featured over 63,000 km2 of highly prospective acreage comprising 56 blocks. F.A. Oil is currently seeking financial and technical partners and has undertaken a prospectivity study, revealing indications of up to 2 billion barrels of hydrocarbons in place.
Sierra Leone's first national oil company (https://apo-opa.co/4gyoqea) (NOC) is also in the final stages of formation. The NOC will hold a 10% stake in all exploration licenses and will play a key role in advancing the country's oil and gas industry. The government aims to achieve a 25-30% stake in projects, subject to negotiation, and has established competitive fiscal terms that include stabilization clauses to protect investors.
Looking ahead, 2025 promises to be a pivotal year for Sierra Leone's oil and gas sector. The country is preparing for its first offshore drilling campaign and is planning to establish a refinery to reduce its reliance on imported refined products, which currently average 15,000 barrels per day. This refinery is part of a broader oil and gas masterplan aimed at adding value to the country's resources and ensuring local benefits.
'The PDSL's participation in AEW: Invest in African Energies 2025 is a game-changer for Sierra Leone's role as a frontier oil market,' says Tomás Gerbasio, VP Commercial and Strategic Engagement, African Energy Chamber. 'This event offers Sierra Leone the opportunity to connect with key investors and partners. It's about more than showcasing resources – it's about building lasting, impactful partnerships that will shape the future of Sierra Leone's energy landscape.'
Sierra Leone's efforts to unlock its hydrocarbon resources will be a key highlight of PDSL's participation at AEW: Invest in African Energies 2025. The event will provide the country with an important platform to present its promising offshore acreage and attract investment that will drive its transformation into a leading oil market.
Distributed by APO Group on behalf of African Energy Chamber.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
13 hours ago
- Arabian Post
Etihad and Ethiopian Airlines Expand Global Connectivity
Etihad Airways and Ethiopian Airlines have launched a strategic codeshare partnership designed to broaden travel options and enhance connectivity across their global networks. This collaboration enables passengers to access a wider array of destinations with seamless transfer options, utilising the complementary routes of the two carriers. The agreement allows Etihad, based in Abu Dhabi, and Ethiopian Airlines, headquartered in Addis Ababa, to offer joint flight services where each airline sells seats on the other's flights under their own flight numbers. This integration facilitates smoother travel for customers by synchronising schedules and improving booking efficiency. The codeshare spans multiple regions, including Africa, the Middle East, and Asia, bringing more destinations within reach for travellers across the two networks. Etihad has been pursuing partnerships to strengthen its footprint across Africa and beyond, capitalising on Ethiopian Airlines' extensive reach as Africa's largest carrier by fleet size and destinations. Ethiopian operates over 60 passenger routes across the continent, as well as significant long-haul services to Europe, the Americas, and Asia. This codeshare allows Etihad to tap into new African markets that would otherwise require complex routing, enhancing its appeal to both business and leisure travellers seeking efficient connections. ADVERTISEMENT The deal is set to improve passenger experience by providing better coordination of schedules, baggage handling, and streamlined ticketing processes. This is critical in a region where connectivity often faces logistical challenges. For Ethiopian Airlines, the partnership enhances its access to the Middle East and onward connections via Etihad's global network, which includes significant hubs in the Gulf region, Europe, and beyond. Joint codeshare agreements like this reflect an industry trend where airlines seek to offer greater convenience through network alliances rather than costly route expansions. Given the competitive aviation landscape post-pandemic, airlines are leveraging collaborations to rebuild passenger confidence and improve load factors. Both Etihad and Ethiopian are looking to capitalise on growing travel demand, particularly the increasing economic ties between the Middle East and Africa. This arrangement also comes at a time when air traffic between Africa and the Middle East is recovering from the disruptions caused by the global health crisis and geopolitical uncertainties. Enhanced cooperation between carriers such as Etihad and Ethiopian Airlines supports the broader goal of facilitating smoother trade and tourism links across these interconnected regions. Travel industry analysts have noted the potential benefits of this partnership in creating more direct routes, reducing layover times, and offering customers a more consistent service standard across flights operated by either airline. Improved connectivity can also foster business growth, as companies in Africa and the Middle East increasingly require reliable travel options for corporate and cargo purposes. Both carriers have committed to leveraging their respective strengths: Etihad's reputation for premium service and advanced fleet, including its recent expansion with fuel-efficient aircraft, and Ethiopian Airlines' robust regional presence and operational expertise. Ethiopian has also invested in modernising its fleet with Boeing 787 Dreamliners and Airbus A350s, positioning it as a key player in African aviation. ADVERTISEMENT Further, this partnership aligns with Ethiopian Airlines' vision to be the leading aviation group in Africa, enhancing its hub status in Addis Ababa while connecting with global markets more efficiently. For Etihad, this codeshare is part of a broader strategic plan to deepen ties with African markets, which are expected to see significant passenger growth over the next decade due to demographic trends and economic development. Both airlines emphasise that customer benefits include more options to book single tickets across both carriers, improved flight connections with less waiting time, and streamlined travel processes such as through-checking of baggage. These improvements reflect ongoing efforts in the aviation sector to raise service quality and passenger convenience amid rising competition. The codeshare covers flights connecting Etihad's Abu Dhabi hub with Ethiopian's African network, facilitating travel to key African cities like Nairobi, Lagos, Accra, and Johannesburg, among others. This effectively expands Etihad's reach into high-demand African markets, supporting tourism, business travel, and diaspora communities. Regulatory approvals for the partnership have been secured from relevant aviation authorities, and the two airlines are moving quickly to integrate reservation systems and coordinate marketing efforts. Industry observers see this as a model for future collaborations between Middle Eastern and African carriers, with potential for further joint ventures or equity partnerships down the line. While the partnership is expected to bolster passenger volumes, it also has cargo implications. Both airlines operate significant cargo services, and improved network coordination can enhance freight movement efficiency, which is vital for trade and supply chains across the regions involved. This development highlights the strategic importance of partnerships in the aviation industry, especially for carriers seeking to optimise resources and enhance competitiveness without the high costs of route duplication. For travellers, the collaboration between Etihad and Ethiopian Airlines offers a practical solution to accessing a broader range of destinations with improved connectivity and reliability. The initiative also coincides with broader trends where Gulf carriers are strengthening ties with African airlines, reflecting the rising economic and geopolitical importance of Africa. Enhanced air connectivity is a key driver of investment, tourism, and cultural exchange between these regions. Both Etihad and Ethiopian Airlines have underlined their commitment to safety, operational excellence, and sustainable growth, indicating that this codeshare will be part of a long-term strategy rather than a short-term tactical move. They aim to leverage this partnership to capture emerging opportunities as global travel patterns evolve, particularly in linking Africa with global markets through efficient hub-and-spoke systems.
Arabian Post
13 hours ago
- Arabian Post
Afreximbank downgrade dispute raises questions on loan categorisation
African Union's African Peer Review Mechanism has challenged Fitch Ratings' downgrade of the African Export‑Import Bank, arguing the move rests on a misinterpretation of its sovereign loan portfolio. On 4 June, Fitch lowered Afreximbank's long‑term foreign‑currency issuer rating from BBB to BBB‑—a notch above junk—with a negative outlook. The agency attributed the downgrade to elevated credit risk, citing an estimated non‑performing loan ratio of 7.1 %, primarily due to sovereign exposures to Ghana, South Sudan and Zambia classified as NPLs. The APRM asserts that Fitch's classification is flawed and inconsistent with Afreximbank's own disclosure of an NPL ratio of 2.44 % as of end‑March. The AU‑established body emphasises the bank's status as a multilateral lender created under a 1993 treaty, which binds member governments—including Ghana and Zambia—as signatories, shareholders and founding members. APRM contends such loans are grounded in intergovernmental cooperation rather than standard commercial terms, so treating them as NPLs misrepresents their nature. Fitch defended its methodology, stating that its supranational rating decisions adhere to globally consistent and publicly available criteria, and highlighting that their analysis clearly identified rating drivers and sensitivities. The agency maintains sovereign exposures showing delayed repayments meet its threshold for classification as non‑performing, irrespective of legal structures or treaties. In that sense, the downgrade aligns with accepted analytical standards. ADVERTISEMENT APRM's critique zeroes in on that threshold. It argues that sovereign repayment negotiations are routine diplomatic engagements, not signs of default. It remains concerned that Fitch's decision conflates financial dialogue with credit impairment. The body has formally called on Fitch, Afreximbank and other African institutions to convene technical consultations and reassess the rating, emphasising the importance of contextually intelligent credit assessments. Beyond the immediate dispute, this episode resonates with a broader continental debate over the relevance and fairness of global credit‑rating frameworks applied to African multilaterals. Africa's longstanding concerns that Western rating methodologies fail to grasp local realities and may unfairly inflate borrowing costs have sparked momentum for alternative mechanisms. Among these, an Africa‑led credit‑rating agency is under development, envisaged to begin operations by September 2025, aimed at providing sovereign ratings that reflect regional economic and institutional contexts. Central to the debate is Afreximbank's evolving lending strategy. Under outgoing president Benedict Okey Oramah, the Cairo‑based lender has aggressively expanded its footprint, increasingly financing private sector projects across the continent and taking calculated sovereign exposure. Supporting growth in under‑served markets like Zimbabwe and Nigeria, the bank grew its asset base from around US$7 billion in 2015 to approximately US$40 billion in 2024, with deposits rising to US$37 billion. That growth has attracted scrutiny. Fitch has highlighted what it sees as elevated concentration of corporate and sovereign risk, pointing to an NPL ratio that exceeds its internal threshold. Observers note that up to 92 % of Afreximbank's lending is directed at commercial businesses, and certain sovereign loans carry interest rates as high as 6.875 % over benchmark rates—much higher than traditional development finance institutions. Proponents of the APRM's position, including lead credit‑ratings expert Misheck Mutize, argue that supplementary indicators such as capital adequacy, collateral density and profitability should carry mitigating weight. Mutize points to a strong equity ratio of 19 %, risk‑weighted capital at 21 %, internal capital generation through profits, and loan collateral cover for 84 % of the portfolio. These factors, he suggests, are downplayed in the rating downgrade despite being explicitly acknowledged in Fitch's own analytic framework. He warns that over‑reliance on contested NPL figures can breach the methodology's balance principles. ADVERTISEMENT Not everyone supports APRM's framing. Analysts note that countries like Zambia officially halted repayments to Afreximbank in 2021, and South Sudan failed to honour its obligations, prompting legal recourse in London. Zambia's treasury has openly stated its debt will be restructured. Against this backdrop, Fitch's interpretation that certain sovereign debt has become non‑performing appears defensible under global standards. This dispute underscores a tension: Afreximbank's assertive growth strategy has boosted its developmental reach and institutional clout, yet it must reconcile that dynamism with risk and transparency expectations imposed by global credit agencies. With Oramah set to step down later this month, the new president will face a pivotal choice: maintain aggressive expansion as the bank charts an independent path, or recalibrate operations to conform more closely with multilateral development bank norms—a course change that could preserve borrowing benefits but limit growth prerogatives. Beyond institutional implications, the outcome has broader financial consequences. A downgrade to BBB‑ tightens Afreximbank's borrowing costs, heightens the risk premium for countries swayed by its lending, and complicates its mission to finance intra‑continental trade. That may squeeze African exporters and traders relying on the bank's funding. Policy stakeholders are paying attention. The APRM's call for dialogue and transparency signals a pushback against the perceived hold of Western agencies over African financial destiny. Meanwhile, the African Development Bank is developing a Continental Financial Stability Mechanism that may borrow under a regional rating—another step towards financial sovereignty.
Gulf Today
21 hours ago
- Gulf Today
Etihad, Ethiopian Airlines launch partnership
Etihad and Ethiopian Airlines activated their codeshare agreement, strengthening connectivity between Africa and Asia, Australia, and the Middle East. This bilateral partnership enhances global travel opportunities for guests, with seats available to book now. Ethiopian will start services from Addis Ababa Bole International Airport (ADD) to Zayed International Airport in Abu Dhabi (AUH) on July 15th, and Etihad Airways introducing daily flights to Addis Ababa starting 8th October. This is the first step ahead of the implementation of the groundbreaking Joint Venture agreed between Etihad and Ethiopian in March 2025 unlocking greater travel opportunities for passengers across both networks. The codeshare lets guests simplify their journeys by making a single booking with one check-in process at the start and the added convenience of having their baggage transferred to their final destination. Arik De, Etihad's Chief Revenue and Commercial Officer, said, 'By leveraging our combined networks, we are unlocking seamless travel opportunities between Africa and Asia, Australia, and the Middle East. Easy connections via Abu Dhabi and Addis Ababa, will enhance flexibility, boosting trade and tourism, and delivering unparalleled travel experiences to guests of both airlines.' Under this partnership, Etihad passengers will gain access to Ethiopian Airlines' extensive African network, with connections via Addis Ababa to 55 destinations across 33 countries, including Entebbe, Kinshasa, Kigali, Lusaka, Harare and Victoria Falls expanding their travel options across the continent. At the same time, Ethiopian Airlines passengers can book itineraries connecting to Etihad-operated flights through Abu Dhabi, with onward service to 20 key destinations across Asia, Australia, and the Middle East including Sydney, Krabi, Colombo and Phnom Penh. WAM
