Kenya’s plans to become an oil producer are gaining momentum, with the government targeting the end of next year to start commercial production.
Energy Cabinet Secretary Opiyo Wandayi revealed that the state is keen to move past the exploration phase and into full-scale development of the Turkana oil fields, marking a significant milestone in the country’s energy sector.
The Lokichar Basin, believed to hold substantial oil reserves, has remained underdeveloped despite years of exploration.
The situation was further complicated by the departure of British firm Tullow Oil in April, raising uncertainty about the project's future. However, the entry of Gulf Energy Ltd, which is finalising acquisition of Tullow’s local interests, has revived hope for progress.
Speaking on NTV on Monday morning, Wandayi confirmed that Tullow Oil is selling its assets to Gulf Energy Ltd, which has put in place strategic plans to continue the exploration of the deposits.
"Gulf Oil is in the process of finalising the buying of the Kenyan Tullow Oil business. We are hopeful that they are going to put together the necessary financial and technical resources to move the project to the next level," Wandayi assured.
"Once we are convinced that they have all we want, we are going to approve the Field Development Plan (FDP) that will then usher the door or the commercial phase. By the end of 2026, we will be having the first product from Turkana heading to the coast or export," he added.
On why Kenya has yet to actualise a refinery even with the potential in explorations, Wandayi revealed that the current deposits cannot allow the country to establish a refinery in the country as that would be uneconomical.
The CS highlighted that based on scientific data and research, it would be in the best interest o the country to continue importing the crucial product.
The South Lokichar Basin region has been the focus of intense exploration since the first major discovery was made by Tullow Oil in 2012 at the Ngamia-1 well. Subsequent exploration uncovered additional fields such as Amosing, Twiga, and Etuko, establishing the basin as the core of Kenya’s oil ambitions.
According to estimates from Tullow Oil and its former joint venture partners, the South Lokichar Basin holds about 560 million barrels of recoverable oil. However, the oil initially in place (OIP) across the basin could be as high as 4 billion barrels, though only a portion is extractable under current economic and technical conditions.
The project’s Field Development Plan, submitted in previous years, aimed to exploit approximately 433 million barrels over 25 years.
At full capacity, the Lokichar oil project was projected to produce between 60,000 and 100,000 barrels of oil per day in its early production phases. These figures made it one of the most promising new oil ventures in East Africa before operations stalled due to financial constraints and Tullow’s eventual exit.
