TURKANA, Kenya – Kenya has revived hopes of becoming an oil-producing nation after the government approved the long-delayed Field Development Plan (FDP) for the South Lokichar Basin, paving the way for the country’s first commercial production.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the approval represents a “historic milestone” in Kenya’s pursuit of a modern and globally competitive economy.
“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 announced in Nairobi.
This marks the first time an oil development plan in Kenya has progressed to the parliamentary stage — a major step that shifts the country from exploration to development and ultimately to production.
A Project Held Back for a Decade
The Lokichar project has struggled for over a decade, with regulatory delays and investor uncertainty pushing key partners out.
In April, Tullow Oil PLC exited the venture entirely, selling its Kenyan assets to Gulf Energy Ltd for at least $120 million. The exit followed years of stalled negotiations and shifting timelines.
The newly approved FDP was submitted by Gulf Energy E&P BV (GE), the licensed contractor for Blocks T6 and T7.
It details how six oil discoveries in the South Lokichar area will be developed and how additional appraisal will maximise resource recovery.
Under the plan, the project will be rolled out in phases, starting with the largest and most technically mature reservoirs.
Full development is projected to require about $6.1 billion (Sh793 billion) in investment, with estimated recoverable reserves of 326 million stock-tank barrels over the 25-year contract period.
Phase 1 aims to produce 20,000 barrels of oil per day, ramping up to 50,000 barrels per day in Phase 2.
The contractor is targeting First Oil by December 2026 and full ramp-up by 2032.
Economic Boost for Northern Kenya and the Country
Wandayi said the project will deliver broad economic benefits — from job creation and local procurement to new investments and long-term business activity, particularly in Turkana and West Pokot.
“Communities will benefit directly through employment, procurement opportunities, skills development, and social investments,” he said.
Nationally, the government projects that South Lokichar could help diversify Kenya’s economy, improve its balance of payments, and attract more global capital.
“This is the biggest private sector–driven upstream petroleum investment in recent years,” Wandayi said. “Successful execution will signal to the world that Kenya is ready for large-scale, high-value industrial investments.”
The ministry also emphasized that local content will be prioritised throughout implementation, with GE expected to hire locally, build capacity and deepen community involvement.
Beyond Lokichar, the government is preparing to open additional exploration blocks through licensing rounds and direct negotiations.
It is also inviting investment in seismic data reprocessing, acquisition and interpretation under the multi-client framework.
Wandayi assured that the state remains committed to transparency, competitiveness and sustainability as Kenya advances its petroleum sector.
