Kenya is targeting commercial crude oil production by 2025, Energy Cabinet Secretary Opiyo Wandayi announced Monday, as Gulf Energy nears completion of its acquisition of Tullow Oil’s assets in the South Lokichar basin.
Reviving Kenya’s Stalled Oil Dream
After years of delays, Kenya’s ambition to become an oil exporter is back on track. The $120 million deal between Tullow Oil and UAE-based Gulf Energy is expected to unlock development of the 560-million-barrel South Lokichar project, initially projected to pump 60,000–100,000 barrels per day (bpd).
The project had stalled after TotalEnergies and Africa Oil exited in 2022, leaving Tullow as the sole operator. Now, with Gulf Energy taking over, Kenya is pushing for final approval of the Field Development Plan (FDP) and a crude pipeline to transport oil from the remote Turkana region.
Pipeline & Export Plans Critical
A major hurdle remains: building an 890km pipeline to Lamu port, estimated to cost $3 billion. Previous financing attempts failed, but the government insists new investors will step in once Gulf Energy finalizes the takeover.
“This project could position Kenya as a key player in Africa’s oil sector,” Wandayi said. “We are working closely with partners to fast-track approvals.”
New Exploration Blocks to Be Auctioned
In a bid to expand its hydrocarbon sector, Kenya plans to auction 10 new oil and gas blocks in September, offering tax incentives to attract investors. The government hopes fresh discoveries will complement the Lokichar project.
Economic Boost or Another Delay?
While optimism is high, analysts caution that past disappointments—including Tullow’s decade-long struggle to secure funding—mean Kenya must deliver concrete progress.
“The Gulf Energy deal is promising, but execution is key,” said an energy analyst. “If the pipeline isn’t funded soon, exports won’t start by 2025.”