The Energy and Petroleum Regulatory Authority (EPRA) is fast-tracking the introduction of comprehensive legislation to guide investments in Kenya’s upstream oil sector, with a target completion date of December this year.
The move marks a crucial step in preparing the country for the long-awaited commercialisation of crude oil resources discovered in Turkana more than a decade ago.
Kenya’s Lokichar Basin, where crude oil was first discovered in 2012, remains the centrepiece of the country’s petroleum ambitions. Despite nine discoveries and an estimated 585 million barrels of oil in reserves, large-scale commercial investment has stalled, apart from a modest pilot project in 2019. EPRA hopes the new rules will provide the clarity needed to attract investors while safeguarding local interests.
According to EPRA director general Daniel Kiptoo, the draft legislation covers seven critical areas, including petroleum management, local content, cost control, land access, safety, sustainability, and pipeline operations. “We target that God willing, we should be able to have concluded the regulations by November, latest by December,” Kiptoo affirmed during a public participation forum in Nairobi this week.
The framework, once finalised, will anchor four main goals: fair business practices, environmental and community protection, sustainability, and stronger data collection for policymaking. Importantly, it will also align with Kenya’s broader ambitions to develop infrastructure such as the proposed 824–892 kilometre crude oil pipeline linking Turkana to the Port of Lamu.
Meanwhile, the government has extended approval for the Turkana Field Development Plan until December 31, 2025, giving Gulf Energy more time to align its investments. This comes as Tullow Oil Plc prepares to exit Kenya, selling its entire local portfolio, valued at approximately Sh15.5 billion, to Gulf Energy Limited.
