Kenya’s oil sector is on the verge of a transformative milestone as Gulf Energy E&P BV has confirmed a US$6 billion investment in the South Lokichar Oil Project in Turkana County.
The firm has pledged to maintain world-class standards and aims to produce crude oil by December 1, 2026.
Speaking during a Joint Parliamentary Committee on Energy, Francis Njogu, Chairman of Gulf Energy E&P, described the project as the single most significant private-sector-driven upstream petroleum investment in Kenya.
Historic Private-Sector Petroleum Investment in Turkana
Njogu said the project aims to create jobs and businesses and also align with the Field Development Plan (FDP).
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“At Gulf Energy, we are approaching this FDP as Kenyans with a view to creating as many jobs and business opportunities for Kenyans, starting with our Turkana host community, as are committed to positioning Kenya as an oil-producing country. We are very ready, and we have set 1st December 2026, as a target to produce oil, and we hope to expeditiously secure the FDP ratification,” said Njogu.
He also emphasized the financial strength of the company, which he described as an indigenously owned company with strong financial resources to support capital-intensive projects such as the South Lokichar Oil Project.
The company has established robust financial partnerships and active lines of credit with active local and international banking and financial institutions.
According to Njogu, the FDP and Production Sharing Agreements (PSAs) present a technically mature and strategically phased plan to unlock Kenya’s largest onshore petroleum development, combining economic rationale, risk reduction, and clear scheduling.
Commitment to Local Content and Socio-Economic Development
Njogu stated that the project emphasizes local content, community engagement, and alignment of mutual benefits.
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The company has developed a ring-fenced Local Content Strategy and plans social investments to ensure the long-term prosperity of Turkana County.
“The South Lokichar project and the FDP we have presented to the Government present a technically mature pathway to unlock Kenya’s largest onshore petroleum development in a shared prosperity model,” Njogu stated.
He emphasized that Gulf Energy is committed to transparency, safety, and full compliance with Kenyan law and international standards.
“While the plan demonstrates a clear scheduling, phased risk reduction and strong economic rationale, Gulf Energy also reaffirms its commitment to operate transparently, safely, and in full compliance with Kenyan legislation and international best practices,” stated Njogu.
Kenya to generate billions from the Lokichar Project
The Company’s CEO, Paul Limoh, and Country Manager, Franklin Juma, stated that the project will create jobs, business opportunities, and socio-economic benefits, particularly for the Turkana host community.
From the project, Kenya stands to gain huge fiscal and economic benefits, with the Government projecting potential earnings between USD 1.05 billion (at USD 60 per barrel) and USD 2.9 billion (at USD 70 per barrel), which translates to Ksh 136 billion to Ksh 371 billion between the investment period.
According to Njogu, the project’s fiscal measures outlined in the FDP are essential to meeting the investment and bankability thresholds required for a Final Investment Decision (FID), which were approved by the Energy and Mining Cabinet Secretary, Opiyo Wandayi.
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