LODWAR, Kenya — Kenya has revived its long-stalled ambitions to join the league of oil-producing nations after the government approved the South Lokichar Basin Field Development Plan (FDP), a move Energy and Petroleum Cabinet Secretary Opiyo Wandayi described as a historic milestone for the country’s industrial future.
Speaking in Nairobi, Wandayi said the approval marks Kenya’s first real transition from oil exploration to field development and, ultimately, commercial production.
“Today, I signed the instruments required for submission of the approved FDP to Parliament for ratification in accordance with Article 71 of the Constitution and Section 31 of the Petroleum Act,” Wandayi said. “This signals our shift from exploration to development and, soon, to commercial production.”
The FDP approval represents the furthest the South Lokichar project has progressed since oil discoveries were first announced in 2012.
Over the years, regulatory uncertainty, operational delays, and investor fatigue pushed several partners out — including Tullow Oil PLC, which agreed in April to sell its entire Kenyan portfolio to Gulf Energy Ltd for at least USD 120 million.
The FDP, submitted by Gulf Energy E&P BV (GE), outlines the commercialisation of six oil discoveries in Blocks T6 and T7 of the Tertiary Rift Basin. The development strategy adopts a phased approach, beginning with technically mature reservoirs, and requires an estimated USD 6.1 billion (Sh793 billion) in total investment.
The plan estimates recovery of 326 million stock-tank barrels over a 25-year contract period. Phase 1 targets 20,000 barrels per day (bpd), rising to 50,000 bpd under Phase 2. The Contractor aims to achieve First Oil by December 2026, with full ramp-up expected by 2032.
Wandayi emphasised that the benefits of the project would be felt across national and local levels. “This development will create jobs, open opportunities for local suppliers, stimulate new enterprises, and support long-term economic activity,” he said.
For communities in Turkana and West Pokot, the development is expected to expand infrastructure, attract new investment, and strengthen revenue-sharing arrangements. Local employment, procurement, and skills development have been identified as priority areas.
At the national level, the project is positioned as a key driver of Kenya’s economic diversification strategy, potentially improving the balance of payments and boosting investor confidence.
The ministry says the initiative will also build new technical competencies in petroleum engineering, logistics, and operations — skills central to long-term national competitiveness.
“Successful execution of this project will signal to the world that Kenya is ready for large-scale, high-value industrial investments,” Wandayi said, calling the South Lokichar plan the most significant private-sector-driven upstream investment in recent years.
The ministry also committed to ensuring that the Contractor prioritizes local content as project implementation gets underway.
“As we unlock the potential of the South Lokichar Basin, the state remains committed to expanding opportunities in other basins,” Wandayi added, confirming that additional exploration blocks will be made available through licensing rounds and direct negotiations.
He further noted ongoing opportunities in data reprocessing, acquisition, and interpretation under the multi-client framework, stressing that all future processes will be anchored in transparency, competitiveness, and sustainability.
Wandayi called on all partners — ministries, agencies, county governments, the Contractor, and local communities — to remain fully engaged to ensure the timely and responsible delivery of Kenya’s first major oil venture.
