Kenya’s government has greenlit the South Lokichar Basin Field Development Plan, marking the furthest advance of the project since oil discoveries were made in 2012 and paving the way for the country’s inaugural commercial oil production.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed the approval on November 24 and submitted the documents to parliament for ratification. This is the first time a Field Development Plan has advanced to this level in Kenya’s oil sector history, representing a watershed moment for the East African nation’s energy ambitions.
The plan, submitted by indigenous oil and gas company Gulf Energy, which acquired Tullow Oil’s Kenyan portfolio earlier this year, outlines a phased development of six oil discoveries in Blocks T6 and T7. The $1.6 billion development estimates 326 million recoverable barrels over a 25-year contract period.
Phase 1 targets production of 20,000 barrels of oil per day, ramping up to 50,000 barrels per day in Phase 2. First oil is projected for December 2026, with full production expected by 2032. Initial crude will be transported by truck to Mombasa, Kenya’s coastal port city.
A planned 895-kilometer export pipeline to Lamu will later integrate Kenya into East Africa’s emerging oil corridor alongside Uganda and South Sudan, further solidifying the region’s position in global energy markets. The approval represents years of negotiations, technical assessments, and regulatory reviews that have kept the project in limbo despite significant oil finds more than a decade ago.
Source: energycapitalpower.com