Sierra Leone Allows Shell to Conduct Offshore Surveys

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Sierra Leone has signed an agreement with Shell that allows the oil major to conduct advanced geological and geophysical surveys across multiple offshore blocks, the country's petroleum directorate said on Wednesday.

• The reconnaissance permit agreement covers an area of approximately 20,600 square kilometres and includes basin modelling and petroleum systems analysis, a statement said.

• The programme, similar to one signed with Eni last October, is expected to enhance understanding of Sierra Leone's deepwater hydrocarbon potential.

• The permit will provide a data-driven framework for technical evaluation and potential future participation in licensing opportunities, the Petroleum Directorate of Sierra Leone (PDSL) said.

• "Our strategy is deliberately focused on de-risking the basin through high-quality data, attracting credible global players and accelerating the pathway towards exploration drilling," Foday Mansaray, PDSL director general, said in the statement.

• Shell said the company routinely deals with governments through non-binding agreements to access data and assess potential opportunities.

• However, this does not signal any commitment to proceed and any further steps would depend on regulatory processes and due diligence, among others, a spokesperson said.

(Reuters)