Kenya’s Gulf Energy affirms commitment to invest hugely and maintain world-class standards in the Turkana County Oil production journey

Following its recent feat in acquiring the GW70 rig, valued at more than k Sh 1936.95 million (M) (US$15 M), from Great Wall Drilling Company (GWDC) in the United Arab Emirates (UAE) on a long-term lease arrangement and ongoing finalization of logistical arrangements to ship the rig from Abu Dhabi to Mombasa before the end of March 2026, Kenya’s Gulf Energy Group has pledged to maintain international best practice in the production of crude oil resources in Turkana County, it was revealed on Feb 13th, 2026.

Appearing at a Parliamentary Committee of Energy Joint meeting, Gulf Energy E&P BV Chairman Francis Njogu, described the project as the single most significant private-sector-driven upstream petroleum investment in Kenya’s history. He assured that the firm will maintain world-class standards with a target to produce crude oil by 1st December this year (2026).

At a session jointly & respectively chaired by Kenya National Assembly’s Departmental Committee on Energy Chairman and the Vice Chairperson –Senate Standing Committee on Energy, Hon David Gikaria & Senator William Kisang, and meant as a public participation exercise ahead of the project’s Field Development Plan (FDP) ratification, Njogu said the firm is set to invest circa K Sh 774.7 billion (B) (US$6 B) in the project.

In both the Gulf Energy E&P BV (GEBV) Field Development Plan (FDP) and the Production Sharing Agreements, strong emphasis is placed on local content, community and related stakeholders’ engagement, and alignment of mutual benefits according to Njogu. 

Accompanied by Gulf Energy Group’s CEO, Mr Paul Limoh, and Country Manager, Franklin Juma, among other officials, Njogu said these commitments, are reinforced through social investments and strict adherence to a robust, ring-fenced Local Content Strategy, with the overarching goal of delivering long-term socio-economic benefits for Turkana County and Kenya as a whole.

“At Gulf Energy, we are approaching this FDP as Kenyans with a view to creating as many jobs and business opportunities for Kenyans, starting with our Turkana host community, since we’re committed to positioning Kenya as an oil-producing country. We’re also very ready, and have set 1st December, 2026, as our target to produce oil; we hope to expeditiously secure the FDP ratification,” Njogu said.

Gulf Energy E&P BV, he disclosed, is a locally owned Kenya company backed by/with strong financial resources to support capital-intensive projects, such as the South Lokichar Oil Project. The company, he added, has established robust financial partnerships and active lines of credit with leading local and international banking and financial institutions.

“The South Lokichar project and the FDP we have presented to the Government present a technically mature pathway to unlock Kenya’s largest onshore petroleum development in a shared prosperity model,” he assured.

“While the plan demonstrates a clear scheduling, phased risk reduction and strong economic rationale, Gulf Energy also reaffirms its commitment to operate transparently, safely and in full compliance with Kenyan legislation and international best practices,” he added.

Kenya stands to gain significant fiscal and economic benefits, with the Government of Kenya projecting potential earnings of between K sh 135.58 billion (B) ( 1.05 B) (at USD 60 per barrel) and K Sh 374.5 B ( 2.9 B)  (at USD 70 per barrel), which translates to K Sh 136 billion to KES 371 billion over the life of the project.

With regards to the project’s cost recovery proposal (contained in the FDP that was approved by the Cabinet Secretary, Ministry of Petroleum and Energy, Opiyo Wandayi, last November), Njogu explained that the project-specific fiscal measures outlined in the FDP are essential to meeting the investment and bankability thresholds required for a Final Investment Decision (FID).

The South Lokichar Development, he said, presents a strategic and time-sensitive opportunity for Kenya to convert a well-understood petroleum resource into long-term economic value.

Under the Petroleum Sharing Contract (PSC) framework, the State, he explained, retains full ownership and stewardship of the resource, while the Contractor (Gulf Energy) provides the technical capability and risk capital needed to bring it to production.

Mr Njogu petitioned the Joint Parliamentary Committee to recommend the project’s ratification in Parliament, explaining that the current opportunity exists against the backdrop of a rapidly evolving global energy landscape, where the window for financing new upstream oil projects is narrowing.

International lenders, he said, are progressively tightening investment criteria for hydrocarbons in line with global climate commitments, and capital is increasingly being redirected toward lower-carbon energy systems.

“As a result, frontier oil projects such as South Lokichar must demonstrate strong economics, robust fiscal stability, and timely decision-making to remain competitive for capital. Any prolonged uncertainty risks placing Kenya at a disadvantage relative to other emerging oil provinces that are actively adjusting their fiscal terms to secure investment before this window closes,” he explained.

Parliament is expected to deliberate on the FDP and PSCs before deciding on ratification in the near future.