Kenya’s Turkana Oil Project Gains Momentum as Gulf Energy Commits $6 Billion Investment

Gulf Energy

The South Lokichar project, located in the remote Turkana region of northwestern Kenya, represents the culmination of years of exploration and planning. Gulf Energy’s chairman, Francis Njogu, said the company has secured strong financial partnerships and access to international credit facilities to support the capital-intensive venture. He emphasized that the project is technically mature and financially viable, with the potential to unlock Kenya’s largest onshore petroleum reserves.

Kenyan officials estimate the economic impact could be substantial. Government projections suggest the project could generate between $1.05 billion and $2.9 billion in revenue, depending on global oil prices, equivalent to roughly 136 billion to 371 billion Kenyan shillings over the project’s lifespan. Those funds would help support national development priorities while strengthening Kenya’s fiscal position.

The project also carries broader ambitions beyond revenue generation. Gulf Energy has pledged to prioritize local employment, community development and domestic business participation. Executives said the company’s local content strategy is designed to ensure that residents of Turkana County benefit directly through job creation, training and increased economic activity. The firm also emphasized its commitment to environmental safety and compliance with Kenyan law and international industry standards.

Under Kenya’s production-sharing framework, the government retains full ownership of the country’s petroleum resources, while Gulf Energy assumes the financial risk and technical responsibility of developing and producing the oil. This arrangement allows Kenya to benefit from its natural resources without bearing the upfront costs of exploration and development, while providing investors with a pathway to recover their capital and earn returns.

Still, the project faces a narrowing window of opportunity. Gulf Energy executives warned lawmakers that global investment in new oil developments is becoming increasingly constrained as international lenders shift their focus toward renewable energy and low-carbon technologies. Frontier projects like South Lokichar must therefore demonstrate strong economic returns and stable regulatory conditions to attract and secure financing. Delays, they cautioned, could weaken Kenya’s competitiveness compared with other emerging oil producers.

If approved, the South Lokichar project would mark a defining moment in Kenya’s economic trajectory. Long dependent on imported fuel, the country could begin producing its own oil, reducing reliance on foreign energy supplies while opening a new source of export revenue. For policymakers and investors alike, the project represents both a test of Kenya’s ability to develop its natural resources and an opportunity to position the country within the global energy economy.

Kenya’s Turkana Oil Project Gains Momentum as Gulf Energy Announces $6 Billion Investment

Gulf Energy, a Kenyan petroleum exploration and production company, has reaffirmed its plan to invest nearly $6 billion (about 775 billion Kenyan shillings) in the development of the South Lokichar oil fields, a project that could transform Kenya into an oil-producing nation and generate billions of dollars in government revenue.

Executives from Gulf Energy outlined the company’s ambitions during a parliamentary energy committee session and public consultation, describing the project as the largest privately driven upstream petroleum investment in Kenya’s history. The company has set an ambitious target to begin producing crude oil by December 1, 2026, contingent on the final ratification of its Field Development Plan by lawmakers.