Oil & Gas

Parliament is set to ratify the extraction of oil and gas in Turkana by Gulf Energy E&P B.V., clearing the way for Kenya’s long-awaited commercial production phase. Energy and Petroleum Cabinet Secretary Opiyo Wandayi approved the Field Development Plan (FDP), marking a major milestone in operationalizing the country’s petroleum resources. The FDP will be presented to Parliament within 30 days for ratification under Article 71 of the Constitution, bringing the project closer to execution.

This move follows Tullow Oil Plc’s sale of its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, completed under the Sale and Purchase Agreement in July 2025. Tullow received $40 million from the first tranche, with two additional payments of $40 million each scheduled for 2026 and 2028, while retaining royalty payments and a 30 percent back-in right for future development phases.

Parliamentary ratification is expected to reignite Kenya’s oil ambitions, which have been delayed due to commercial, logistical, and ownership challenges. Approval of Gulf Energy’s plan will accelerate field development, positioning Turkana as a key contributor to Kenya’s energy sector and export portfolio.

The entry of Gulf Energy E&P B.V. signals a new phase for Kenya’s petroleum industry, offering both economic benefits and enhanced energy security. The project underscores Kenya’s commitment to leveraging natural resources responsibly while attracting strategic investors to drive the country’s oil development forward.