KENYA PLANS TO START CRUDE OIL EXPORTATION

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has announced that the Kenyan government is expecting the export of crude oil from Lokichar in Turkana County to begin by the end of 2026. The plan involves the start of commercial production of the crude oil by Gulf Energy Ltd. Speaking on Monday, June 9, Wandayi said that earlier in 2024, the project experienced delays including financial and partnership issues after a consortium that was initially established fell apart, leaving Tullow Oil alone.

Gulf Energy Ltd is finalizing its acquisition of Tullow Oil’s assets, and the Field Development Plan (FDP) is pending approval. The project is expected to produce between 60,000 and 100,000 barrels per day initially with an estimated 560 million barrels recoverable over 25 years.

This initiative aims to position Kenya as a player in the global oil market, capitalizing on its estimated 560 million barrels of recoverable oil. Kenya’s National Assembly has presented concerns regarding the transparency of Tullows Oil’s Ksh 15 billion asset sale to Gulf Energy noting potential impacts on Kenya’s oil ambitions, and despite the concerns the acquisition is reportedly in its final stages, with Gulf Energy poised to manage operations.

 The estimated recoverable oil stands at 560 million barrels, with the oil initially in place (OIP) potentially reaching up to 4 billion barrels, although only a portion is extractable.  The Lokichar basin oil fields were first discovered in 2012 by the Anglo-Irish firm Tullow Oil, but the project has stalled due to financial struggles. In March 2025, Members of Parliament gave the Ministry of Energy and Tullow Oil until June 30, 2025, to finalize the FDP for the Turkana Oil Fields.  Wandayi states that hopefully by December 2026, a barrel of crude oil will be exported out of the country for refining.