Commercial oil production commences as Turkana prepares for inaugural exports

On February 12, 2026, the Kenyan government confirmed it is on track to begin commercial oil production and first exports from the South Lokichar Basin in Turkana by December 2026. 

This follows the Ministry of Energy and Petroleum’s recent approval of the Field Development Plan (FDP) submitted by Gulf Energy, which acquired the project from Tullow Oil in late 2025. 

Initial Phase 1 output is set at 20,000 barrels per day (bpd), with plans to scale up to 50,000 bpd in Phase 2 and eventually 120,000 bpd by 2032.

In a shift from previous plans for a $1.1 billion pipeline to Lamu, Gulf Energy will initially evacuate the crude via road and rail to the port of Mombasa to lower upfront costs.

The full development of the six confirmed discoveries is estimated to cost $6.1 billion (KSh 793 billion) over a 25-year period.

Under the agreed framework, the national government will receive 75% of the revenue, the county government 20%, and the local community 5%. 

As of February 11, 2026, the Auditor-General has warned Parliament that proposed changes to the project—specifically raising the cost-recovery ceiling to 85%—could significantly delay the state’s access to “profit oil”.

The Controller of Budget has also flagged a lack of clear legal mechanisms to protect these revenues for future generations and called for more transparency regarding the Production Sharing Contracts (PSCs). 

The government plans to auction an additional 10 new oil and gas blocks in September 2026 to further capitalize on the momentum in the Turkana region.

By Anthony Solly