MPs give Tullow, Energy Ministry until June 2025 to finalise Turkana oil plan
The firm has stated that securing an investor is crucial to its future after its two joint venture partners, TotalEnergies and Africa Oil Corp, exited in May 2023.
Members of Parliament have given the Energy Ministry and British oil firm Tullow until June 30, 2025, to finalise the Field Development Plan (FDP) for the Turkana oil fields.
The directive is aimed at speeding up the commercialisation of Kenya’s crude reserves, which have faced repeated delays.
More To Read
In its report on the 2025-2026 Budget Policy Statement, the National Assembly’s Liaison Committee also urged the Energy Ministry and the Petroleum Regulatory Authority (Epra) to fast-track the search for a strategic investor to support the project.
Tullow discovered oil in Lokichar in 2012, but the project has stalled due to financial constraints.
The firm has stated that securing an investor is crucial to its future after its two joint venture partners, TotalEnergies and Africa Oil Corp, exited in May 2023.
The FDP, which outlines environmental and social impact plans as well as production and cost forecasts, requires government approval before full development can proceed.
“…That the Cabinet Secretary in charge of Energy and Petroleum, in conjunction with Epra, fast tracks the onboarding of a strategic investor and the review and approval of the Field Development Plan for South Lokichar oil fields and submits the same to Parliament for consideration by June 30, 2025,” the Liaison Committee stated in its report tabled before Parliament on Tuesday.
Tullow and its former partners initially submitted the FDP for approval in March 2023, but it was rejected by the Energy Ministry, which asked for improvements.
The company, now the sole owner of the project, presented a revised version in March 2024, but this, too, was declined.
The government cited concerns over the gap between Tullow’s asset value and the funds needed to develop the oil field and build a pipeline.
As a result, the ministry extended the deadline by six months until December 2024 for Tullow to address these concerns.
Authorities questioned how the firm planned to cover the financial shortfall given its limited asset value, which stood at $248.6 million (Sh32 billion) as of June 2024.
The company has been writing down the value of its Kenyan assets over the years due to uncertainty over the project’s viability.
The Energy Ministry also raised concerns about Tullow’s technical capacity after losing its joint venture partners, who held a combined 50 percent share in the project before pulling out. The government’s approval of the FDP is seen as key to unlocking the long-stalled oil development in Turkana.
Top Stories Today
