Kenyans could soon reap significant benefits from the country’s oil sector as the Energy and Petroleum Regulatory Authority (EPRA) moves to finalize new regulations by December aimed at boosting investment and preparing for the commercialisation of crude oil deposits discovered in Turkana over a decade ago.
The new framework comes as the regulator awaits the outcome of a review of the revised Field Development Plan (FDP), which could pave the way for large-scale investment in the South Lokichar Basin. The basin, at the heart of Kenya’s oil exploration efforts since 2012, holds an estimated 585 million barrels of oil across nine discoveries, though no major commercial projects have taken off beyond a 2019 pilot.
EPRA Director General Daniel Kiptoo revealed that seven key upstream regulations have already been drafted, covering areas such as local content, petroleum management, cost oversight, safety, land access, and pipeline operations. “We target that God willing, we should be able to have concluded the regulations by November, latest by December,” he said, adding that the rules are designed to ensure Kenyans benefit from oil resources while safeguarding local communities and the environment.
The regulations are built around four main goals: promoting fair business practices, ensuring safety and quality, encouraging sustainability, and strengthening data collection to guide policymaking. Public participation forums, including one held in Nairobi this week, are underway to gather views before the regulations are finalized.
To complement the regulatory push, Kenya has also gazetted 50 oil and gas blocks across the Tertiary Rift, Lamu, Anza, and Mandera basins, opening them up for exploration and investment. The government is equally eyeing major infrastructure projects, including a proposed 824–892 kilometre pipeline to transport crude oil from Turkana to the Port of Lamu for export.
Meanwhile, the government has extended approval for the Turkana FDP to December 31, 2025, giving Gulf Energy more time to plan investments. This follows Tullow Oil Plc’s decision to sell its Kenyan portfolio to Gulf Energy for at least $120 million (Sh15.5 billion), a deal that includes 463 million barrels of oil reserves.
