Turkana Oil Project: Tullow and Gulf Energy Win Key Government Extension

Turkana Oil Project:

Kenya’s dream of becoming an oil-producing nation is not over yet and now Tullow Oil and Gulf Energy have more time to bring it closer to reality.

Big Win for Kenya’s Oil Ambitions

In a significant boost to Kenya’s upstream oil sector UK-based Tullow Oil and its local partner Gulf Energy have secured a crucial extension from the Kenyan government to proceed through their long-delayed oil-field development plan. The extension put on to the South Lokichar Basin scheme in Turkana County one of East Africa’s maximum promising crude oil zones.

This move reflects renewed Government commitment to monetize Kenya’s oil reserves and revive confidence in the stalled petroleum sector.

Why the Extension Matters

The South Lokichar scheme has been in limbo for years due to:

• Financing challenges
• Regulatory approvals
• Environmental impact concerns
• Negotiations through Turkana communities
• Delays in Final Investment Decision (FID)

Through this new extension Tullow and Gulf Energy currently have the opportunity to:

• Update or revise their Field Development Plan (FDP)
• Secure new financing or strategic partners
• Development Kenya’s crude oil export timeline

This extension may lastly unlock Kenya’s first large-scale commercial oil production.

Also Read: Bakary Sakame’s Reputation Damaged by Leaked Video

The Plan: South Lokichar Basin, Turkana County

Discovered in 2012 the South Lokichar oil basin is estimated to hold over 560 million barrels of recoverable crude oil. Tullow Oil which has led exploration in the region for over a decade, is joined by Gulf Energy a leading Kenyan energy player through deep local ties.

Scheme Highlights:

• Location: Turkana County, northwest Kenya
• Partners: Tullow Oil Plc (UK), Gulf Energy Ltd (Kenya)
• Estimated Reserves: 560M+ barrels
• Current Status: Extension granted for FDP and investment timeline
• Goal: Final Investment Decision (FID) and start of production by 2026

What Occurs Next?

Currently that the Kenyan Government has granted the extension all eyes are on the scheme’s next steps:

1. Finalizing the Field Development Plan (FDP)

Tullow and Gulf Energy are expected to revise and resubmit the FDP to reflect updated technical and financial data.

2. Strategic Investment Partnerships

The extension gives Tullow more time to secure capital or strategic partners. A $120M deal was recently discussed for asset restructuring, potentially bringing Gulf Energy into a stronger operator role.

3. Government Approval & FID

Once the FDP is cleared the final investment decision (FID) could set the stage for Kenya’s first commercial oil production targeted as early as 2026.

Government’s Message: Kenya Is Open for Energy Business

The extension signals a broader policy shift by the Ministry of Energy and Petroleum to revitalize Kenya’s upstream oil sector attract foreign direct investment and support local partnerships.

“We remain committed to unlocking Kenya’s oil wealth for economic growth,” said a senior official at the Ministry.

This comes as Kenya increasingly positions itself as an oil and gas hub for East Africa complementing regional pipeline plans and clean energy transitions.

Why This Matters for East Africa

Kenya’s oil success could be a game-changer for the region:

• Boost regional oil diplomacy over Uganda and South Sudan
• Catalyze infrastructure investment (e.g., pipelines, refineries, roads)
• Stimulate job making and community development in Turkana
• Strengthen energy independence and trade flows

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