The Government of Kenya has finally approved the South Lokichar Basin Field Development Plan (FDP), marking a historic point in Kenya’s economy.
In a public press release dated Monday, November 24, Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced the milestone, describing it as a massive step towards building a modern, competitive economy.
“Earlier today, I signed the instruments required for submission of the approved FDP to Parliament for ratification in accordance with Article 71 of the Constitution and Section 31 of the Petroleum Act (Cap. 308). This is the first time an FDP has advanced to this level.”
With the approval of the South Lokichar Basin Field Development Plan, Wandayi stated that the government is now shifting from exploration to development, and soon, it will shift to commercial production.
The FDP was submitted by Gulf Energy E&P BV, a Kenyan company that now owns the oil blocks in the region and is licensed to develop Block T6 and Block T7 in the Tertiary Rift Basin.
The plan covers six oil discoveries in the Lokichar Basin and explains how they will be developed in stages.
Cost of the FDP Project
CS Wandayi stated that the approved development will require an estimated $6.1 billion (Ksh789.95 trillion) investment over a 25-year contract period.
According to the ministry, recoverable reserves stand at 326 million stock-tank barrels, with oil initially in place estimated at up to 4 billion barrels.
Phase One aims to produce 20,000 barrels per day, increasing up to 50,000 barrels per day under Phase Two.
Wandayi pointed out that Gulf Energy plans to first produce oil by December 2026, with full production expected by 2032.
The South Lokichar project is Kenya’s biggest energy project in the country’s history, and it follows years of delays under British explorer Tullow Oil, which discovered oil in Turkana in 2012 but exited in April 2025 after failing to secure financing.
Gulf Energy acquired Tullow’s Kenyan assets for $120 million (Ksh15.54 trillion), including contingent resources of approximately 463 million barrels.
Kenyans to Benefit from the South Lokichar FDP
In the press release, CS Wandayi expressed his pleasure at the government’s approval of the FDP, as Kenyans will now be able to access job opportunities in good numbers as the project begins.
He pointed out that the project opens opportunities for local suppliers and stimulates new enterprises, while also supporting long-term economic activities in the country.
“For Northern Kenya, especially Turkana and West Pokot, the project will help improve infrastructure, attract additional investment, and support local priorities through revenue-sharing arrangements. Communities will benefit directly through employment, procurement opportunities, skills development, and social investments.”
Wandayi also stated that, at first, oil will be transported by truck to Mombasa, as in the 2019 pilot project.
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Later, Kenya plans to build a 895-kilometer pipeline to Lamu to facilitate oil exports, which will be key to Kenya joining other East African oil producers like Uganda and South Sudan.
Regional Significance
The South Lokichar project is expected to reshape East Africa’s energy landscape.
By joining Uganda and South Africa as oil-producing nations, Kenya creates new opportunities for regional trade and cooperation.
If successful, the project could attract foreign investment and strengthen Kenya’s position as a key player in the East African crude market.
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The planned 895-kilometer pipeline to Lamu will also complement Uganda’s pipeline to Tanzania, forming a network that could turn East Africa into a strategic oil corridor.
By approving the FDP, Kenya hopes to boost export earnings, reduce reliance on imported fuel, and improve its balance of payments, while offering a competitive alternative to global buyers seeking alternative supply sources.
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Oil is too waxy to pump in a pipe without heating considerably. Not feasible for 895 km pipe. Reason Tullow gave up.
Trucking not cost effective. Processing near site seems like best option and the value add would stay in area.