Gulf Energy Ltd, a Nairobi-based oil and gas trader that acquired Tullow Oil Plc’s crude discoveries in Kenya, plans to commence production next year, according to a top official.
Tullow agreed to sell the assets to the local firm in April for Sh15.6 billion after more than a decade of unsuccessful attempts to develop the finds as it focuses on reducing its debt.
Kenya’s energy regulator required a field development plan (FDP) from the buyer before the transaction could proceed. Tullow received the first tranche of Sh5.2 billion in September.
Kenya has granted initial approval for Gulf Energy’s plan for the South Lokichar project, Energy Cabinet Secretary Opiyo Wandayi said.
“I will be forwarding the approved FDP to Parliament for ratification,” he noted.
Once Parliament ratifies the plan, the contractor will move to start the project and outline the required investments.
“First oil is expected by December 2026,” Wandayi added.
