Kenya Sets Ambitious 2026 Target for Crude Oil Export Launch
Kenya is positioning itself to join the ranks of oil-exporting nations, with Cabinet Secretary for Energy and Petroleum Opiyo Wandayi announcing plans to begin commercial crude oil production and exports by 2026.
The East African country’s oil ambitions center on the South Lokichar project, which has faced development challenges after UK-listed Tullow Oil struggled to secure investor partners. French supermajor TotalEnergies and London-listed Africa Oil withdrew from the project two years ago, leaving Tullow Oil as the sole owner and complicating Kenya’s petroleum aspirations.
Recent developments have renewed optimism, with Tullow Oil signing a heads of terms agreement with Gulf Energy Ltd to sell all its working interests in Kenya for at least $120 million. Gulf Energy is currently finalizing the acquisition while the Field Development Plan for the South Lokichar basin awaits approval.
The project promises substantial output, with initial production estimates ranging between 60,000 and 100,000 barrels per day. Over its 25-year lifespan, the project could yield an estimated 560 million barrels recoverable, potentially positioning Kenya as a significant player in the global oil market.
The Kenyan government has renewed efforts to establish a thriving oil and gas industry, offering tax incentives and other benefits to attract investment. Plans are underway for an exploration round covering 10 blocks, scheduled to launch in September, as part of the country’s broader strategy to develop its hydrocarbon resources.
Source: Oil Price