The agreement was formalized on April 23 at the Invest in African Energy Forum in Paris, reinforcing Sierra Leone’s growing profile among frontier exploration markets.

Signed through the Petroleum Directorate of Sierra Leone (PDSL), the license grants Marginal Energy exclusive rights to explore, develop and produce hydrocarbons across five offshore blocks – G-Blocks 145, 146, 147, 160 and 161 – covering approximately 6,800 KM².

The deal establishes a full-cycle upstream program, spanning exploration through to potential production, under a fiscal and regulatory framework designed to balance investor returns with national value creation.

According to details released by PDSL, the agreement includes a structured exploration period of up to seven years, alongside a minimum work program incorporating 3D seismic acquisition, advanced geoscience studies and drilling commitments. The company has committed to invest more than $225 million during the exploration phases.

In a statement released by PDSL, President Julius Maada Bio said the agreement reflects the government’s commitment to “responsibly harnessing Sierra Leone’s natural resources for sustainable economic transformation,” adding that partnerships with capable investors will help accelerate development of the country’s petroleum sector.

PDSL Director General Foday Mansaray described the deal as “an important step in unlocking Sierra Leone’s offshore potential,” emphasizing the country’s focus on transparency and competitiveness. The agreement also includes provisions for local content development, technology transfer and environmental management, aligning with Sierra Leone’s broader strategy to ensure long-term economic benefits from resource development.

For Marginal Energy, which brings over two decades of experience in the Niger Delta, the agreement represents an entry into a largely underexplored basin with significant upside potential. The company said it is committed to deploying its technical and financial capabilities to advance exploration while maintaining high standards of environmental and operational performance.

The signing comes as African governments continue to position their upstream sectors to attract capital amid shifting global energy dynamics. It also follows a reconnaissance permit agreement signed by PDSL with Shell at the forum a day earlier, enabling Shell to conduct advanced geological and geophysical surveys across multiple offshore blocks.

The agreement was signed by H.E. Dr. Musalia Mudavadi, Prime Cabinet Secretary (and Cabinet Secretary for Foreign and Diaspora Affairs), and AFC President and CEO, Samaila Zubairu. The signing ceremony, witnessed by H.E. President William Samoei Ruto at AFC and Government of Kenya’s ongoing The Africa We Build Summit in Nairobi, formalizes Kenya as the host country of AFC’s Regional Office. This positions the Corporation closer to a high-growth and capital rich market with increasing demand for bankable infrastructure solutions.

“Kenya welcomes the entry of AFC into the country and in the East Africa region. Kenya continues to be not only the hub for the region but in the continent,” said Prime Cabinet Secretary H.E. Mudavadi. “Kenya represents one of Africa’s most compelling growth corridors. Kenya’s economy is projected to expand by 5.3% in 2026, while the broader East African Community (home to over 400 million people) is growing at approximately 6% annually.”

Nairobi’s established role as a regional logistics, financial and technology hub makes it a natural base for AFC’s operations across transaction origination, capital mobilisation and cross-border project execution.

AFC plans to deploy and mobilize more than US$2 billion across the region over the next three to five years. Focus will remain on sectors with strong multiplier effects, including logistics and trade corridors, power and transmission, special economic zones, digital infrastructure, and climate-resilient assets. The Regional Office will drive capital mobilization and structured local currency solutions, delivering AFC’s investments and financial services products to its clients and partners, utilizing transaction frameworks that improve bankability and crowd in institutional capital.

The Regional Office will serve as a full-service platform—originating, structuring and executing transactions—while deepening portfolio optimization via partnerships with governments, institutional investors and private operators.

AFC’s expansion builds on an established track record in Kenya. Since Kenya joined AFC in 2017, the Corporation has committed over US$1.3 billion across energy, transport and industrial projects. Current initiatives include the development of the Dongo Kundu Integrated Industrial Park and Naivasha Special Economic Zone II in partnership with Arise Integrated Industrial Platforms, as well as ongoing support for the expansion of Jomo Kenyatta International Airport.

President Ruto said: “This signing marks a pivotal moment in Kenya’s economic development journey. By deepening our partnership with AFC, we are reinforcing Kenya’s position at the forefront of infrastructure and industrial transformation in Africa. AFC’s presence in Nairobi will help create jobs and strengthen our capacity to deliver transformative projects aligned with Kenya’s Vision 2030.

“AFC’s decision to establish its first regional office here also reflects Kenya’s role as a preferred base for pan-African and international institutions seeking a platform for regional growth. With inflation easing and progress in fiscal consolidation, Kenya offers a stable environment for long-term structured development finance.”

Samaila Zubairu, President and CEO of Africa Finance Corporation, said: “Nairobi’s position as a logistics, finance and technology hub makes it a natural anchor for AFC’s East African operations. Establishing a Regional Office in Nairobi allows us to originate faster, structure more effectively, and deploy capital at scale across interconnected markets. Our focus is on building investable infrastructure platforms that unlock regional trade, industrial capacity and long-term economic growth.”