Kenya set to export oil in 2026: green light for commercial production

Kenya is preparing to launch commercial crude oil production and exports from 2026, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said on Monday . Companies are finalizing asset sales and development plans for an onshore resource pool, marking a crucial step in the African country's entry into the global oil market.

Despite Kenya’s oil and gas resources , development has long been stymied. London-listed British company Tullow Oil has failed to find investment partners for its South Lokichar project, a venture that has been in the works for years. Two years ago, TotalEnergies (France) and London-listed Africa Oil pulled out of the project, leaving Tullow Oil as the sole owner of the blocks and further complicating Kenya’s oil dream.

Plans to develop oil fields discovered in the South Lokichar Basin in northern Kenya include building a pipeline to transport crude from the landlocked interior. Earlier this year, Tullow Oil signed a preliminary agreement with Gulf Energy Ltd to sell all its stakes in Kenya for at least $120 million. Gulf Energy is currently completing the acquisition of Tullow Oil’s assets, while the Field Development Plan (FDP) for the South Lokichar Basin is awaiting approval, according to Kenyan media.

The project is expected to initially produce between 60,000 and 100,000 barrels per day (bpd), with an estimated 560 million barrels recoverable over 25 years. This would position Kenya as an emerging player in the global oil market, Wandayi said. In March, the Secretary announced that Kenya plans to launch an oil and gas exploration tender for 10 blocks in September 2025, offering tax incentives and other benefits to attract investors.

Location of the Lokichar basin between Kenya and Ethiopia

Economic and Geopolitical Perspectives

The start of oil production represents a historic opportunity for Kenya, which aims to diversify its economy and reduce its dependence on energy imports. However, the success of the project will depend on the ability to attract international financing and overcome the logistical challenges of transporting crude oil . With the completion of the acquisition by Gulf Energy and the approval of the FDP, Kenya could transform the South Lokichar basin into a strategic energy hub for East Africa.

The article Kenya ready to export oil in 2026: green light for commercial production comes from Scenari Economici .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/kenya-produzione-petrolio-2026-esportazioni/ on Tue, 10 Jun 2025 06:00:51 +0000.