INVESTING IN SIERRA LEONE Petroleum resources

1. INVESTING IN SIERRA LEONE Petroleum resources Mr Timothy M Kabba, Director General, Petroleum Directorate - Office of the President June 2019 UK – SL Trade and Investment Conference

2. Petroleum Directorate of Sierra Leone: what do we do ■ Pursuant to executive powers conferred by H.E. the President, the Director General of the Petroleum Directorate administers the Petroleum Exploration and Production Act (PEPA), 2011 and reports directly to H.E. the President ■ The Petroleum Directorate under PEPA 2011 has a statutory responsibility for regulating the upstream oil and gas sector, and ensuring that all Operators conducting petroleum operations comply with the applicable Petroleum Legislation and any other regulation(s) or guideline(s) governing upstream oil and gas operations in Sierra Leone. 2

3. Working hydrocarbon system and deepwater prospectivity Plateau and transform system. ■ Proven hydrocarbons: Five wells found hydrocarbons in the Cretaceous. • Cretaceous stratigraphic pinch-out plays. • Deepwater prospectivity Four of those wells produced hydrocarbons to surface. • • Proven hydrocarbons in deep water Cretaceous turbidite plays • Structural and stratigraphic plays identified in deep water by PDSL ■ Prospectivity: Shallow Water: • Abundant remaining potential • • Cretaceous tilted fault blocks within the syn- rift section. • Undrilled Palaeozoic basin under the northern shelf. Deep to Ultra-deep Water: • • Structural plays associated with the Sulima 3

4. Reopening of the Fourth Offshore Licensing Round Conclusions of consultations: 1. Companies recognise the proven nature of Sierra Leone’s working hydrocarbon system. 2. Licence Round Participants have considered a broad basis of prospectivity, which spans a range of geographic locations, play types and water depths. 3. This prospectivity extends beyond the boundaries of the Licence Areas made available at the start of the Fourth Licensing Round. 4. The Directorate has noted that a portion of the interest shown lies in water depths in excess of 2,500 meters, the boundary between deep and ultra-deep water. It is the view of the Directorate that the number of companies with the financial and technical capability to operate safely in such ultra-deep water areas is limited. 5. understanding of Sierra Leone’s prospectivity will benefit from working with the world-class inventory of seismic, gravity, magnetic and well data and studies that is owned by the Government. Potential investors acknowledge that their In light of the above, a key conclusion drawn by the Directorate is that the conditions offered pursuant to the original tender process no longer provide the Government of Sierra Leone with a structure broad enough to explore the full range of investor interest that has been expressed. 4

5. Multiple Plays Types, Proven Hydrocarbons Northern Shelf: Undrilled Mesozoic shelf Shallow water depths (<50m) Northern ultra-deep: Mesozoic structural prospects and stratigraphic plays. Southern Shelf/Slope: Syn-rift structural prospects Deeper water stacked slope fans. Discoveries: • Mercury 1 • Venus B1 • Jupiter 1 • Savannah 1X Light oil and gas condensate sampled during previous drilling campaign Central Ultra-deep: Cretaceous turbidite plays Aptian/ Albian syn rift source and reservoir potential Prospects including: • Pea Blue • Leo • Vega Southern Ultra-deep: Cretaceous basin floor fans 5

6. 4thLicensing Round: Forward Path Timeline of the award Fully open the Republic’s offshore waters for petroleum licensing. 1. Both Tender processes commenced on 22 May 2019 Utilise a more flexible Block framework as the basis for licensing. 2. Deadline 20th Sept 2019 Direct Tender Launch a Direct Tender for Licence Applications where 50% or more of the application area is in water depths in excess of 2,500 m 3. Deadline 22nd Nov 2019 Open Tender Launch an Open Tender for all other Licence Applications 4. 6

7. Block system framework • SL offshore waters fully open to licensing • Applicants are invited to delineate their areas of interest by assembling multiple contiguous blocks • Applications for partial blocks may be made, but the total License Area must be equivalent to a min. of three Blocks (c4,000 km2) Overlapping applications will be reviewed with reference to their relative merits and against the criteria detailed on the published scorecard 7

8. Bidding flexibility to shape License activities No minimum work programme is set for the Initial Exploration Period • The PD expects companies to invest in studies, data and other activities that build toward the drilling of exploration wells • Other biddable items are detailed in Application Section C • 8

9. Petroleum Directorate Released Data To inform their technical studies, the PD strongly encourages Applicants to invest in the extensive inventory of geophysical and well data owned by the Govt. of Sierra Leone Technical Database score  Initial Exploration Period Commitment score  Technical assessment score  Work programme quality score  New data recently added • 5,840 line-km shallow water 2D seismic (field data) • Field data for TGS 3D and 2D seismic 9

10. Investors information www.pd-sl.com 10

11. Licence Award ■ Applications for both Direct and Open Tender will be assessed against a publicly disclosed scoring system (see www.pd-sl.com). ■ Successful applicants will be notified in a timely manner by the Directorate, following which the Applicant will have 30 days to accept the proposed award. ■ Once accepted, an exclusive Licence Agreement will be signed and ratified by Parliament. 11

12. THANK YOU FOR YOUR ATTENTION Mr Timothy Kabba Director General Petroleum Directorate Sierra Leone 20 Mandalay Street, Kingtom, Freetown, Sierra Leone info@pd.gov.sl