The Kenyan government says it is targeting the country’s first commercial crude oil exports by December 2026 with full field production ramp-up targeted for 2032, following the official approval of the Field Development Plan (FDP) for the South Lokichar Basin in Turkana County.
The Ministry of Energy and Petroleum granted final approval to Gulf Energy E&P BV (a subsidiary of Gulf Energy Holdings) for the development of Block 10BB, Block 10BA, and Block 13T (collectively referred to as the South Lokichar project area), as well as the adjacent Block T6 and Block T7 in the Tertiary Rift basin.
The decision comes just two months after Tullow Oil plc completed the sale of its entire remaining interest in the Turkana blocks to Auron Energy E&P Limited, an affiliate of Gulf Energy, in a transaction valued at approximately US$180 million (including contingent payments tied to project milestones and oil price triggers).
Proposed Oil Project
The approved FDP which covers six discovered fields in the South Lokichar Basin is worth an estimated $ 6.1 billion. it covers the drilling of approximately 300–350 development wells, construction of a 825-km heated and insulated 18–20 inch export pipeline from Lokichar to the port of Lamu (the existing Early Oil Pilot Scheme infrastructure will be upgraded and integrated), central processing facilities (CPF) with initial capacity of 50,000 bpd, expandable to 120,000–130,000 bpd in later phases, field gathering systems, water injection facilities, and power generation (initially diesel, transitioning to grid and renewable hybrid)
The targeted fields include:
– Ngamia
– Twiga
– Ekales
– Agete
– Amosing
– Lokichar West
Roll-out Plan
Phase I (2026–2028) Targets initial production of 20,000 barrels per day (bpd) by end-2026, rising to 50,000 bpd by 2028. Focus on the Amosing, Ngamia, and Twiga fields using existing Early Oil Pilot Scheme wells and new drilling.
Phase II (2029–2032) Progressive infill drilling and development of Ekales, Agete, and Lokichar West fields to reach a plateau of 120,000 bpd by 2032, subject to reservoir performance and additional investment sanction.
Funding
Gulf Energy has indicated it is in advanced discussions with international banks and export credit agencies for project finance covering up to 70% of Phase I costs. The Government of Kenya will retain its 10–15% carried interest through the National Oil Corporation of Kenya (NOCK), while local Turkana county is expected to receive 5% of gross revenue under the Petroleum Act 2019.
