By Njeri Irungu,
Nairobi, Kenya — 24th November 2025
Kenya has formally approved the South Lokichar Basin Field Development Plan (FDP), marking a historic milestone in the country’s journey toward commercial oil production. The announcement was made today by the Cabinet Secretary for Energy and Petroleum, Hon. J. Opiyo Wandayi, EGH, who described the move as a “turning point in Kenya’s drive to build a modern, competitive, first-world economy.”
According to the Cabinet Secretary, the approval signals Kenya’s transition from oil exploration to full-scale development and eventual production. The instruments required for the submission of the FDP to Parliament— in line with Article 71 of the Constitution and Section 31 of the Petroleum Act—were signed earlier in the day.
The FDP was submitted by Gulf Energy E&P BV (GE), a Kenyan investor licensed to develop Blocks T6 and T7 in the Tertiary Rift Basin. The plan covers six key discoveries and adopts a phased development approach designed to maximize resource recovery. Phase 1 is set to produce 20,000 barrels of oil per day, with production rising to 50,000 barrels per day during Phase 2. GE targets First Oil by December 2026, with full ramp-up expected by 2032.
With an estimated investment requirement of USD 6.1 billion and potential recovery of 326 million stock-tank barrels over the 25-year contract period, the project stands among the largest private-sector-driven petroleum investments in Kenya’s history.
Hon. Wandayi emphasized that the development will have far-reaching national and regional benefits. Local communities—particularly in Turkana and West Pokot—are expected to gain through employment, procurement opportunities, skills development, and revenue-sharing arrangements. Nationally, the project is expected to stimulate new enterprises, improve infrastructure, attract foreign investment, and support long-term economic activity.
He added that the South Lokichar project strengthens Kenya’s economic base by diversifying the economy, improving the balance of payments, and positioning the country as an attractive destination for global capital. The project will also develop new technical competencies in engineering, logistics, and petroleum operations.
The government expressed confidence in GE’s capacity to meet the agreed timelines and deliver First Oil as scheduled. As development progresses, the contractor will be required to prioritize local content, particularly local employment and procurement.
Looking ahead, the government affirmed its commitment to expanding exploration opportunities in other basins. Additional blocks will be made available through licensing rounds and direct negotiations, with further prospects in data acquisition, processing, and interpretation.
“As we unlock the potential of the South Lokichar Basin,” the Ministry noted, “we remain committed to transparency, competitiveness, and sustainability.”
