Sierra Leone has provisionally awarded 15 offshore blocks to Cluff Energy Africa, a joint venture between British oil tycoon Algy Cluff and billionaire Michael Spencer, the government said in a statement in April.
Cluff Energy Africa was founded shortly after Cluff stepped down from his eponymous national resource firm last August.
In addition to the blocks awarded to the Cluff outfit, Sierra Leone provisionally awarded nine other blocks to Innoson Oil and Gas, part of the Nigerian-based IVM Innoson Group.
The awarding of the offshore licences comes at the culmination of Sierra Leone’s fourth offshore licensing round, which had been delayed several times after its launch in June 2018.
Despite booming interest in West African oil and gas, there have been no discoveries of either oil or gas in commercial quantities in Sierra Leone as yet.
In the country’s previous licensing round in 2012, offshore blocks were awarded to 11 companies, all of which either chose not to renew their initial licenses during a slump in oil prices or had their contracts terminated for failing to meet minimum activity requirements. Five of Sierra Leone’s eight offshore wells made small-scale oil and gas discoveries before they were abandoned during 2015 and 2016.
The award also comes amid a sharp drop in oil prices that has pushed oil companies recently to announce deep cuts in investment plans, particularly in the oil exploration and production segment.
