The government has formally approved the South Lokichar Basin Field Development Plan (FDP), marking a major milestone in Kenya’s transition from oil exploration to full-scale development and future commercial production.

Energy Cabinet Secretary (CS) Opiyo Wandayi announced the approval on November 24, calling it a historic step in Kenya’s economic modernization.

In his statement, the CS said the approval represents “a historic point in Kenya’s drive to build a modern, competitive, first-world economy,” adding that he had already signed the necessary instruments for submission of the plan to Parliament for ratification under Article 71 of the Constitution and Section 31 of the Petroleum Act.

Wandayi emphasized that this is the first time an FDP in Kenya has progressed to this level, stating that the government’s action “signals Kenya’s shift from exploration to development and, soon, to commercial production.”

Phased Development to Unlock Six Oil Discoveries

The FDP was submitted by Gulf Energy E&P BV (GE), the Kenyan firm licensed to develop Block T6 and Block T7 within the Tertiary Rift Basin.

According to the CS, the plan outlines the development of six confirmed oil discoveries, further appraisal work, and continued exploration to maximize extraction.

He noted that the plan follows “a phased approach, beginning with the largest and most technically mature reservoirs.”

The Energy Ministry estimates that full development of the discoveries will require an investment of USD 6.1 billion, with a projected recovery of 326 million stock-tank barrels across the 25-year contract period.

“The total investment needed to fully develop the six discoveries is approximately USD 6.1 billion, with a best-estimate recovery of 326 million stock-tank barrels over the 25-year contract period. Phase 1 is projected to produce 20,000 barrels of oil per day, rising to 50,000 barrels per day under Phase 2. The Contractor targets First Oil by December 2026 and full ramp-up by 2032,” Wandayi said.

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Phase 1 is expected to yield 20,000 barrels per day, with Phase 2 production rising to 50,000 barrels per day.

GE is targeting first oil by December 2026 and full production by 2032.

Wandayi said the project will deliver wide-ranging national and regional benefits.

He explained that the development will “create jobs, open opportunities for local suppliers, stimulate new enterprises and support long-term economic activity,” noting that Turkana and West Pokot counties will be among the biggest beneficiaries.

Boost to Local Economies and National Competitiveness

The CS highlighted that communities in northern Kenya will gain from employment prospects, procurement openings, skills transfer, and social investments.

He added that improved infrastructure and new investment will strengthen regional economies through revenue-sharing frameworks.

At the national level, Wandayi said the project “strengthens the foundation of a future first-world economy by diversifying Kenya’s economic base,” while improving the balance of payments and enhancing Kenya’s appeal to global investors.

He described the FDP as the largest private-sector-driven upstream petroleum investment in recent years.

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Government Confident in Contractor’s Delivery

Wandayi affirmed the government’s confidence in GE’s ability to meet targets, saying the contractor is expected to prioritize local content through jobs, procurement and community capacity-building.

He assured that the ministry will continue coordinating with all agencies and county governments to ensure responsible and timely execution.

As Kenya moves to unlock more petroleum prospects, the government plans to open additional blocks for licensing and negotiate new opportunities in data reprocessing and interpretation.

He stressed that these efforts would be guided by transparency, competitiveness and sustainability.

Wandayi concluded by stating that the FDP approval confirms that “Kenya is ready for the next chapter of its economic transformation,” saying the shift toward commercial oil production will enhance resilience and lay the foundation for a prosperous, self-reliant, first-world economy.

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Fuel pump at a petrol station in Kenya. PHOTO/NTV.