NAIROBI — Kenya has taken a decisive step toward tapping its long-awaited petroleum potential after the Government formally approved the South Lokichar Basin Field Development Plan, a historic decision that positions the country on the verge of joining the ranks of oil-producing nations.
The announcement was made by Cabinet Secretary for Energy and Petroleum Hon. James Opiyo Wandayi, EGH, who described the approval as one of the most transformative economic milestones in Kenya’s recent history. The move officially transitions the project from exploration to full-field development after more than a decade of prospecting in Turkana.
The development plan—submitted to Government by the Energy and Petroleum Regulatory Authority on behalf of Tullow Kenya B.V.—details a massive investment programme estimated at USD 6.1 billion. The investment will finance the full development of six confirmed oil discoveries in the South Lokichar Basin, with projections showing that the fields will produce approximately 326 million stock-tank barrels of recoverable oil over the 25-year production period.
According to the approved framework, initial output is expected to stand at around 20,000 barrels of oil per day, before scaling up to 50,000 barrels per day by 2032 as production capacity expands. The Contractor has set an ambitious target of delivering First Oil by December 2026, a milestone that would mark Kenya’s emergence as a commercial oil producer for the first time.
Government officials say the development represents a crucial investment in Kenya’s economic future. The project is expected to:
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Expand the national revenue base
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Improve foreign exchange earnings and balance of payments
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Boost investor confidence at a time of intense global competition for capital
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Support industrial growth and advance technical skills in petroleum development
The Ministry of Energy expects the project to catalyse the development of new competencies in engineering, logistics, and field operations, with significant multiplier effects across the wider economy.
A strong emphasis has been placed on ensuring that host communities—particularly in Turkana and West Pokot—reap direct benefits from the development.
Government highlighted that collaboration between the Contractor, national agencies, county governments, and residents will be critical. The project is expected to spur:
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Job creation for local residents
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Growth of local enterprises and supply chains
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Increased procurement opportunities for Kenyan businesses
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Investments in education, training, infrastructure, and social services
The Ministry further noted that community development programmes would be aligned with local priorities to ensure sustained impact and inclusivity.
The Government expressed confidence in the Contractor’s ability to meet the 2026 production timeline but reiterated that strict adherence to local content rules will be mandatory throughout the implementation phase.
This includes:
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Prioritizing Kenyan employment
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Scaling local procurement
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Investing in community capacity building
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Ensuring transparent and collaborative project execution
As Kenya edges closer to first oil, the South Lokichar development is already being billed as the country’s most promising industrial breakthrough in over a decade—one with the potential to reshape regional development and reposition the national economy for the future.
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