Kenya is aiming to kickstart commercial crude oil production and exports by next year, according to Energy and Petroleum Cabinet Secretary Opiyo Wandayi. The announcement comes as key stakeholders finalize an asset acquisition and development plans for the South Lokichar oil basin in the country’s north.
Kenya’s oil ambitions, once stalled due to financing setbacks, appear to be regaining momentum. British energy firm Tullow Oil, which has long spearheaded exploration efforts in the region, struggled for years to secure partners for its flagship South Lokichar project. The exit of major stakeholders — French oil giant TotalEnergies and Africa Oil Corp. — in 2022 left Tullow as the sole owner of the blocks, further complicating project progress.
Despite the challenges, recent developments suggest a turning point. Tullow Oil signed a preliminary agreement earlier this year to sell its Kenyan assets to Gulf Energy Ltd. for a minimum of $120 million. Gulf Energy is now in the final stages of acquiring Tullow’s working interests, while Kenya awaits regulatory approval for the Field Development Plan (FDP) for South Lokichar.
The project is projected to yield an initial production of between 60,000 and 100,000 barrels per day, with an estimated 560 million barrels recoverable over a 25-year period. The crude will be transported via a planned pipeline from the landlocked Turkana region to the coast for export.
“If successful, this development will firmly place Kenya on the global oil map,” Wandayi said Monday.
As part of broader efforts to attract investment and revive the sector, Kenya plans to launch a licensing round in September for ten exploration blocks. The government is also offering tax breaks and other incentives to boost investor interest.
Kenya’s renewed push to establish itself as an oil-producing nation signals a strategic shift in its energy policy, with hopes of unlocking long-term economic benefits from its untapped hydrocarbon resources.
