The Energy and Petroleum Regulatory Authority (EPRA) has revealed plans to introduce proper legislation to guide investments in the upstream oil sector by December this year.
The move is expected to prepare Kenya for the commercialisation of its crude oil deposits, which were discovered in Turkana around 13 years ago.
This announcement comes as the regulator awaits the outcome of the review of the revised Field Development Plan, which could open the door to investment in the Lokichar Basin.
The basin has been at the centre of Kenya’s oil exploration efforts ever since the initial discovery in 2012.
To support the sector, EPRA has drafted seven key upstream regulations. These include rules on local content, petroleum management, cost management, safety, land access, and pipeline operations.
The draft laws are currently under public participation, with forums being held across the country, including one in Nairobi this week.
EPRA director general Daniel Kiptoo said the rules are meant to ensure Kenya benefits from its oil resources while protecting local communities and the environment.
“We target that God willing, we should be able to have concluded the regulations by November, latest by December,” Kiptoo said.
The regulations are expected to provide a clear framework for the exploitation of resources in the South Lokichar Basin, which has an estimated 585 million barrels of oil. Although nine discoveries have been made in the basin, no major commercial investment has happened yet, apart from a small pilot in 2019.
Kiptoo noted that the regulations will focus on four main goals: promoting fair business practices, ensuring safety and quality, encouraging sustainability, and improving data collection for policymaking.
At the same time, Kenya gazetted 50 oil and gas blocks spread across the Tertiary Rift, Lamu, Anza, and Mandera basins. These blocks are open for exploration and investment.
Kenya is also eyeing major investments in infrastructure, including a proposed 824-892 kilometre pipeline to transport crude oil from Turkana to the Port of Lamu for export.
The government has extended approval for the Field Development Plan for Turkana to December 31, 2025, to allow Gulf Energy more time to review and plan investments.
Recently, Tullow Oil Plc announced plans to sell its entire Kenyan portfolio to Gulf Energy Limited for at least $120 million (Sh15.5 billion). The deal involved Tullow Overseas Holdings BV selling 100 per cent of its shares in Tullow Kenya BV, which holds about 463 million barrels of oil reserves.
