Kenya aims to begin commercial crude oil production and exports next year, Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced on Monday. The move comes as final steps are underway to complete the sale of key oil assets and approve development plans for a major onshore oil project.
The country holds oil and gas reserves, but progress has stalled in recent years. UK-listed Tullow Oil, the main developer of Kenya’s South Lokichar oil fields, struggled to find investment partners for the project. In 2022, Tullow’s partners—France’s TotalEnergies and London-listed Africa Oil—withdrew from the venture, leaving Tullow the sole operator and casting uncertainty over the project’s future.
Despite past setbacks, Kenya has made new plans to develop the South Lokichar Basin, located in the north of the country. The project involves building infrastructure to transport oil from the remote, landlocked region, including a pipeline for exports.
Earlier this year, Tullow Oil signed a preliminary agreement with Kenya’s Gulf Energy Ltd to sell all its Kenyan assets for at least $120 million. According to local media reports, Gulf Energy is now finalizing the acquisition, while the government reviews the project’s Field Development Plan.
If approved, the project could start by producing between 60,000 and 100,000 barrels of oil per day. Over a 25-year period, total recoverable reserves are estimated at 560 million barrels.
“This project could place Kenya on the global oil map,” Wandayi said on Monday.
In addition to backing the South Lokichar project, the Kenyan government is preparing to launch a new oil and gas exploration round in September. Ten blocks will be offered, and authorities are promoting the sector with tax breaks and other incentives to attract investors.