Kenya has taken a major step towards commercial oil production after the Government approved the South Lokichar Basin Field Development Plan. Cabinet Secretary for Energy and Petroleum Hon. J. Opiyo Wandayi announced the approval in Nairobi on 24 November 2025, calling it a historic milestone in the country’s ambition to build a modern, competitive, first world economy.
Hon. Wandayi confirmed that he had signed the documents required for submission of the approved Field Development Plan to Parliament for ratification in line with Article 71 of the Constitution and Section 31 of the Petroleum Act. He stated that this is the first time an oil development plan has advanced to this stage, marking Kenya’s transition from exploration to development and future commercial production.
The plan was submitted by Gulf Energy E and P BV, the licensed developer for Block T6 and Block T7 in the Tertiary Rift Basin. It provides a detailed roadmap for the full development of six oil discoveries, while allowing continued exploration and appraisal to maximise resource recovery. According to the Ministry, development will follow a phased approach, beginning with the largest and most technically ready reservoirs.
The total investment required to execute the project is estimated at 6.1 billion United States dollars. The best estimate is that 326 million stock tank barrels will be recovered over the 25-year contract period. Production is expected to reach 20,000 barrels of oil per day under Phase 1, increasing to 50,000 barrels per day in Phase 2. The contractor is targeting First Oil by December 2026 and full production ramp-up by 2032.
Hon. Wandayi noted that the project will deliver significant national and regional benefits, with job creation, new opportunities for local suppliers, increased enterprise development and long term economic activity. Northern Kenya, particularly Turkana and West Pokot, is expected to see upgraded infrastructure and greater investment inflows, supported by revenue sharing mechanisms. Communities will benefit from employment, procurement opportunities, skills development and social programmes.
At the national level, the development strengthens economic diversification, improves Kenya’s balance of payments and enhances the country’s standing as a predictable investment destination. Hon. Wandayi described the project as the most significant private sector upstream petroleum investment in recent years, stating that its successful execution will demonstrate that Kenya is ready for large scale, high value industrial development.
He added that the Ministry will continue working with other Government agencies, county administrations, community representatives and the contractor to ensure responsible and timely delivery. The Government expects Gulf Energy to prioritise local content, including employment, procurement and capacity building for host communities.
Hon. Wandayi also revealed that the State is preparing to expand oil exploration opportunities in other basins through licensing rounds and direct negotiations, alongside opportunities in petroleum data acquisition and interpretation. He reaffirmed the Government’s commitment to transparency, competitiveness and sustainability in the sector.
“Today’s milestone confirms that Kenya is ready for the next chapter of its economic transformation,” the Cabinet Secretary said, adding that advancing toward commercial oil production strengthens economic resilience, creates room for new industries and lays the foundation for a prosperous and self reliant first world economy.
