Kenya expects to export its first crude oil from Turkana in the first quarter of 2027, with production scheduled to begin in December 2026, according to the Energy and Petroleum Regulatory Authority (EPRA).
Speaking in Nairobi at a media roundtable organized by EPRA in partnership with the Kenya Editors Guild (KEG), EPRA Director of Petroleum and Gas Engineer Edward Kinyua said the contractor developing the South Lokichar Basin project is working according to the timelines set out in the approved Field Development Plan.
Kinyua said the project has set December 2026 as the first oil date, while Kenya expects its first crude oil export to leave Mombasa in the first quarter of 2027, in line with the Field Development Plan.
Oil companies discovered the South Lokichar Basin deposits in 2012, but development stalled because of concerns over the project’s commercial viability. Kinyua said the current contractor, Gulf Energy and PBV, submitted the Field Development Plan for blocks T6 and T7 on September 30, 2025. EPRA assessed the plan for its technical and commercial viability before recommending it to the Energy Cabinet Secretary for approval. Parliament later reviewed and ratified the plan in February 2026.
Kinyua said EPRA is now monitoring the development work and confirmed that the contractor remains within the timelines set out in the Field Development Plan.
Kinyua also assured Kenyans that the government has measures in place to prevent fuel shortages as global petroleum markets face volatility, particularly because of disruptions along major supply routes in the Middle East.
He said EPRA has strengthened its planning and is working closely with government agencies, suppliers, and other stakeholders under Kenya’s government-to-government petroleum import arrangement to maintain reliable fuel supplies.
Kinyua said the government-to-government arrangement has helped Kenya secure petroleum supplies while keeping premiums and freight charges fixed.
He said Kenya has avoided major fuel shortages through careful planning and coordination between EPRA, technical teams, the ministry, the wider government, and suppliers in the Gulf. He added that the arrangement has also helped Kenya secure relatively low premiums for imported petroleum products.
EPRA is also developing regulations to establish strategic petroleum stocks that would complement the existing minimum operational reserves.
Kinyua said global diesel supplies remain constrained, with buyers sourcing the product from as far away as the Far East at higher prices. However, he said Kenya continues to benefit from the fixed premiums and freight charges under the government-to-government arrangement. He noted that while global buyers are paying around $300 per tonne, Kenya pays about $84 per tonne for petrol, $97 per tonne for jet fuel and $78 per tonne for diesel. He said EPRA will continue working with suppliers and other stakeholders to maintain reliable supplies.
Under the current regulations, oil marketers must maintain stocks equivalent to 25 days of diesel sales and 20 days of super petrol sales.
Kinyua said the minimum operational stock requirements come under Legal Notice No. 44 of 2008, which requires petroleum marketers to maintain sufficient stocks to support security of supply. The regulation requires marketers to hold 25 days of diesel stock based on their sales over the previous 180 days, while super petrol requires 20 days of stock.
Kinyua said the proposed strategic stocks regulations are currently under review by the Attorney General. Once approved, the regulations would allow private investors to develop additional petroleum storage facilities. He said the government is considering a larger strategic stock system.
He also said the proposed Dangote refinery in Lamu could strengthen Kenya’s petroleum security by supplying locally refined products and providing an additional buffer against disruptions in global petroleum markets.
source:www.kbc.co.ke
African Energy Council