NAIROBI, Kenya — Kenya is edging closer to becoming a crude oil exporter, more than a decade after oil was first discovered in Turkana County.
The South Lokichar Basin project is targeting first oil in December 2026, with the first commercial crude exports expected through the Port of Mombasa in the first quarter of 2027.
The Energy and Petroleum Regulatory Authority (EPRA) says the developer remains on course to meet the timelines approved under the project’s Field Development Plan.
The project is expected to generate government revenue, create thousands of jobs and stimulate economic activity in Turkana and other parts of the country.
Kenya Targets 20,000 Barrels A Day
The project covers oil discoveries in Blocks T6 and T7 of the South Lokichar Basin, where commercial quantities of crude were first discovered in 2012.
Gulf Energy E&P BV is now developing the Kenyan assets after acquiring them from Tullow Oil.
Under the approved development plan, the first phase is expected to produce 20,000 barrels of crude oil per day.
Production is projected to rise to about 50,000 barrels per day during the second phase, with full field development targeted by 2032.
The project moved closer to implementation on September 27 when a 1,500-horsepower drilling rig arrived at the Port of Mombasa.
The rig is expected to be transported to Turkana, where it will support drilling operations under the commercial development programme.
Gulf Energy has contracted Baker Hughes for well services and SLB for an early production facility.
EPRA said the Field Development Plan was submitted in September 2025 and subsequently assessed for technical and commercial viability before being approved and ratified by Parliament in February 2026.
The regulator is monitoring development work against the approved schedule.
How Much Could Kenya Make From Turkana Oil?
The National Treasury estimates that the project could generate between US$1.05 billion (about Sh136 billion) and US$2.9 billion (about Sh371 billion) in government revenue over its lifetime, depending on crude oil prices.
The higher projection is based on an oil price of US$70 per barrel, while the lower estimate assumes a price of US$60 per barrel.
Government revenue is expected to come through mechanisms including profit-oil sharing and state participation in the project.
Other state agencies are also projected to benefit from the oil development.
Kenya Petroleum Refineries Limited (KPRL) could earn about Sh42.3 billion from storage and handling, while the Kenya Ports Authority (KPA) is projected to receive about Sh41.9 billion from the New Kipevu Oil Jetty.
Oil Project Could Create 3,000 Jobs
The project is expected to create more than 3,000 direct, indirect and induced jobs during development and production.
Employment opportunities are expected to extend beyond oil extraction to sectors including transport, logistics, hospitality, retail, construction and other support services.
The government estimates that the project will require more than US$5 billion, equivalent to about Sh646 billion, in capital investment.
A further US$8 billion, or about Sh1.03 trillion, is projected to be spent on operating costs over 25 years.
The investment is expected to create opportunities for Kenyan companies supplying goods and services to the oil industry.
Why Turkana Oil Will Not Lower Fuel Prices Immediately
Despite the expected economic benefits, first oil from Turkana will not immediately translate into cheaper petrol or diesel for Kenyan motorists.
The reason is that the South Lokichar project will initially produce crude oil, while Kenya does not currently have sufficient refinery capacity to process the crude into the finished petroleum products used by motorists.
Energy Cabinet Secretary Opiyo Wandayi has said the initial crude production will therefore be destined for export markets.
Under the current plan, crude will be transported from the oil fields to Mombasa by road or rail before being exported through the Kipevu facilities.
Parliament has also been informed that environmental safeguards are being updated to reflect the revised transportation arrangements.
