Kenya, East Africa’s largest economy, is getting ready to begin commercial crude oil exports by late 2026, following years of setbacks. Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed the timeline, stating that commercial production will begin at the South Lokichar fields in Turkana, operated by Gulf Energy.
Gulf Energy is in the process of acquiring Tullow Oil’s assets in Kenya for $120 million.
The deal hinges on the approval of a field development plan (FDP) for the Turkana project, expected by June 2025.
“Once we are convinced that they have all we want, we are going to approve the field development plan that will then open the door for the commercial phase. By the end of 2026, we will be having the first product from Turkana heading to the coast or export,” Wandayi said.
The Turkana fields, with an estimated 560 million barrels recoverable over 25 years, are projected to produce between 60,000 and 100,000 barrels per day during the initial phase.
Wandayi believes the project could elevate Kenya’s position in the global oil market if its substantial reserves are fully exploited.
Background and setbacks
Kenya’s ambition to start commercial oil export has been delayed multiple times.
The country has continued to face funding challenges after TotalEnergies and Africa Oil exited from the Turkana project in 2023.
Tullow Oil, which assumed sole operatorship of the project, is now also divesting. Tullow discovered Kenya’s first commercial oil in Turkana county in 2012.
The Irish energy company paid nearly $2 million in royalties in 2024 under Kenya’s early oil pilot scheme, launched in 2019 to assess the commercial viability of its crude.
While the scheme has shown significant promise, the government has insisted on full commercial exports to magnify the economic benefits.
Earlier this year, the government pushed the export timeline to 2028 due to financing issues.
Notwithstanding, Wandayi believes that the imminent approval of the FDP could reverse that.
“As a matter of fact, we are looking at, by the end of 2026, at least having a barrel of crude oil getting out of Lokichar heading to the coast for export,” he stressed.
