Omanghana
Kenya is set to begin its first-ever commercial oil production by the end of 2026, marking a major milestone in the country’s energy sector after nearly 15 years of exploration and pilot projects.
Kenya’s Energy Cabinet Secretary, Opiyo Wandayi, announced that production will commence from the South Lokichar oil fields located in Turkana County with an initial output of 20,000 barrels per day (bpd).
According to government projections, production is expected to gradually increase to 50,000 bpd by 2032, while long-term estimates indicate the Lokichar Basin could eventually produce up to 120,000 bpd.
The commercial launch follows a major ownership transition after Tullow Oil exited the Kenyan project in late 2025. The company sold its interests to Gulf Energy through its affiliate Auron Energy in a deal valued at $120 million.
Kenya plans to export its crude oil through an 825-kilometer heated pipeline that will connect the Lokichar oil fields to the Port of Lamu for shipment to international markets.
Despite the breakthrough, the government has postponed plans to establish a domestic oil refinery, citing low production volumes during the initial stages of the project. Officials stated that a commercially viable refinery would require between 300,000 and 500,000 bpd to operate sustainably.
Instead, Kenya is exploring the possibility of participating in a regional refinery project in Tanga that could process crude oil from Kenya, Uganda, and South Sudan.
The South Lokichar oil project is backed by an estimated $6.1 billion investment aimed at recovering approximately 326 million barrels of oil over a 25-year production period.
The development officially places Kenya among Africa’s oil-producing nations and represents one of the country’s most significant energy and infrastructure investments in recent decades.
Source: Omanghana
