• Gulf Energy commits about $6 billion to develop the South Lokichar field in Turkana.
• Production could start in December 2026, pending final approval of the development plan.
• Recoverable reserves are estimated at about 560 million barrels.

Gulf Energy confirmed on February 13 before a joint session of Kenya’s parliamentary energy committees that it plans to invest about $6 billion in the development of the South Lokichar oil project in Turkana County, northwestern Kenya.

The announcement came during parliamentary review of the Field Development Plan (FDP) and the Production Sharing Contracts (PSC) submitted for ratification. Approval is a regulatory requirement before the project can move into commercial development.

According to details presented to lawmakers, the development plan provides for phased production from oil discoveries in blocks T6 and T7. The target start date is December 1, 2026, subject to final approval of the FDP. A previous plan submitted in 2024 by then-operator Tullow Oil was rejected by Kenyan authorities.

Under the production-sharing framework, the Kenyan state retains ownership of the resources. The operator finances the investments and recovers its costs before sharing the remaining “profit oil,” as defined in the PSC terms.

Projections discussed in parliament estimate cumulative state revenues of between $1.05 billion and $2.9 billion over the project’s roughly 25-year lifespan, based on oil prices ranging from $60 to $70 per barrel. For reference, Brent crude was trading around $67.75 per barrel before market close on February 13, according to Investing.com.

Project revived after Tullow’s exit

The development follows the completion in 2025 of Tullow Oil’s sale of its Kenyan assets to Gulf Energy. The change of operator marked a new phase focused on bringing the project into commercial production.

South Lokichar is located in what is considered Kenya’s main onshore exploration basin. Recoverable reserves are estimated at about 560 million barrels, according to data reported by Oil Price in November 2025.

On the industrial side, Enerdata analysis indicates that the first development phase is expected to produce about 20,000 barrels per day, with output potentially rising to 50,000 barrels per day in later stages.

For exports, crude shipments are expected to rely on an approximately 820-kilometer pipeline linking Lokichar to the port of Lamu under the LAPSSET corridor project. According to the African Energy Council, the infrastructure could transport up to 80,000 barrels per day, providing strategic access to international markets.

Abdel-Latif Boureima