Tullow Oil and Gulf Energy have received more time from Kenya’s energy regulator to submit their Field Development Plan (FDP), a crucial step toward launching commercial oil production.
The plan will guide how oil from the Lokichar Basin will be extracted, transported, and marketed.
Without it, the government cannot issue licenses for full-scale production, delaying progress on the project.
The Energy and Petroleum Regulatory Authority confirmed the new deadline runs through the end of 2025.
Gulf Energy, which is in the process of acquiring Tullow’s stake, is expected to revise and finalize the FDP before submission.
Kenya’s inability to produce oil at scale stems largely from infrastructure limitations.
A major hurdle has been the absence of a dependable pipeline to transport crude from Turkana to the coast for export.
Tullow Oil, once seen as a transformative player in Kenya’s oil sector, is exiting the project to ease its debt burden after years of financial strain and limited success.
However, the finalization of the FDP remains a key condition for the sale to Gulf Energy to proceed.
The new timeline aligns with the government’s goal to begin commercial production by late 2026.
Officials say Kenya is eager to move beyond exploration and fully develop the Turkana reserves to boost its energy sector.
Since the discovery of oil in the region, hopes for economic change have been high, but actual production has been delayed by funding gaps, infrastructure problems, and slow regulation.
source: www.kenyans.co.ke
African Energy Council