Government Approves South Lokichar Basin Plan, Unlocking Kenya’s Journey to First Oil in 2026
By Peace Muthoka.
The Government of Kenya has officially approved the landmark South Lokichar Basin Field Development Plan (FDP), taking the country a major step closer to commercial oil production. The approval marks a defining moment in Kenya’s march toward a modern, competitive and industrial economy powered by strategic natural resource development.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced the breakthrough on Monday at KASNEB Towers in Upper Hill, shortly after signing the instruments required for submission of the approved FDP to Parliament. The documents will be tabled under Article 71 of the Constitution and Section 31 of the Petroleum Act. Wandayi said the approval demonstrates the Government’s readiness to move from exploratory work into actual oil development and, soon, commercial production.
He emphasized that this is the first time in Kenya’s history that an FDP has progressed to this stage. He described the approval as a national milestone that places the South Lokichar Basin at the heart of the country’s energy future.
The FDP was submitted by Gulf Energy E&P BV (GE), a Kenyan investor licensed to develop Block T6 and Block T7 in the Tertiary Rift Basin. The plan outlines how six confirmed discoveries in South Lokichar will be developed through a phased strategy that begins with the largest and most technically mature reservoirs. It also includes additional appraisal and exploration work aimed at maximizing recovery from what experts have repeatedly described as Kenya’s most commercially promising oil basin.
Wandayi said the South Lokichar Basin has carried Kenya’s hopes for more than a decade. It has been studied, debated and tested, yet progress remained slow due to regulatory and commercial hurdles. He noted that the FDP approval removes those barriers and clears the way for full-scale development to finally begin.
According to the plan, the total investment required to unlock the basin’s potential stands at USD 6.1 billion. The project targets a best-estimate recovery of 326 million stock-tank barrels over the 25-year contract period. Phase One production will start at 20,000 barrels per day, later rising to 50,000 barrels per day during Phase Two. GE has committed to delivering First Oil by December 2026, with full ramp-up expected by 2032.
Wandayi said the South Lokichar project will deeply transform communities in Northern Kenya, especially in Turkana and West Pokot. The region will benefit from new jobs, new enterprises and increased demand for local suppliers. Improved infrastructure, enhanced logistics networks and expanded investment opportunities will follow, he said. He added that revenue-sharing arrangements will ensure local communities benefit directly through employment, procurement, training and social development programs.
He also highlighted the national benefits. Kenya’s economic base will diversify, the balance of payments will improve, and global investors will gain renewed confidence in Kenya’s ability to handle complex, high-value industrial projects. The development will also build new technical skills in petroleum engineering, operations and logistics—skills that Kenya needs for long-term competitiveness.
“This is the single most significant private-sector-driven upstream petroleum investment in recent times,” Wandayi said. “It sends a clear message that Kenya is ready for large-scale, transformative industrial ventures.”
He urged all ministries, government agencies, county governments, GE and community stakeholders to maintain strong coordination as the project moves into the implementation phase. He said GE must prioritize local content and ensure that host communities have access to employment, business opportunities and skills development.
Wandayi also revealed that the Government plans to expand petroleum opportunities beyond South Lokichar. New blocks will be opened for licensing, while more options will be explored in data acquisition, reprocessing and interpretation under the multi-client framework.
He reaffirmed the Government’s commitment to transparency, sustainability and competitiveness as it unlocks new basins.
Wandayi concluded that the approval of the South Lokichar Basin FDP signals Kenya’s readiness for a new era of economic transformation. “By advancing toward commercial oil production, we are strengthening national resilience and laying the foundation for a prosperous, self-reliant first-world economy,” he said.
