South Lokichar Oil Project, Amosing, Ngamia and Twiga fields. Photo/ Courtesy.
The government of Kenya approved the South Lokichar Basin Field Development Plan (FDP), the first petroleum project in the country to advance from exploration to full development and commercial production.
President William Ruto, who signed instruments for the plan’s submission to Parliament for ratification, termed the approval a historic moment that signals Kenya’s shift toward a modern, competitive, first-world economy anchored on diversified revenue streams.
The FDP submitted to the Energy and Petroleum Regulatory Authority (EPRA) by Gulf Energy E&P BV (GE), a Kenyan-owned investor licensed to develop Blocks T6 and T7 in the Tertiary Rift Basin outlines how six major oil discoveries will be fully developed over a 25-year horizon.
Billion Investment, First Oil Expected in 2026According to the plan, the total investment required to bring the six discoveries into full production stands at approximately Sh 895.5 bilion.
The fields are projected to recover 326 million stock-tank barrels over the life of the contract.
A phased production approach will be adopted, beginning with the most technically mature reservoirs.Phase 1 targets output of 20,000 barrels of oil per day,Rising to 50,000 barrels per day under Phase 2.
The contractor has set ambitious timelines, targeting First Oil by December 2026 and full ramp-up to peak production by 2032.
Boost to Local Economies and National Competitiveness. The government says the project will generate significant benefits both nationally and locally particularly in Turkana and West Pokot through job creation, business opportunities for local suppliers, infrastructure growth and revenue-sharing with communities.
President Ruto said that the government expect the South Lokichar development to strengthen Kenya’s economic base, attract global capital, and build technical expertise in petroleum engineering, logistics, and operations.
The project is also seen as Kenya’s most significant private-sector-driven upstream investment in recent years.
“This milestone signals to the world that Kenya is ready for large-scale, high-value industrial investments,” the president William Ruto notes, adding that the project reinforces Kenya’s ambition to build a resilient, innovation-driven economy.
Government Backs Contractor’s Capacity and Local Content Priorities. The Ministry of Energy affirmed full confidence in Gulf Energy E&P’s ability to deliver First Oil on schedule and advance to full-field development.
The contractor is expected to prioritise local content including employment, procurement of goods and services, and capacity-building for host communities.
