Kenya targets first Turkana crude oil exports in early 2027

Kenya is on course to export its first crude oil from Turkana in the first quarter of 2027, with production expected to begin in December 2026, the Energy and Petroleum Regulatory Authority (EPRA) has announced.

Speaking in Nairobi during a media roundtable convened by the Energy and Petroleum Regulatory Authority (EPRA) in partnership with the Kenya Editors Guild (KEG), EPRA Director of Petroleum and Gas Engineer Edward Kinyua said the contractor developing the South Lokichar Basin project is progressing within the timelines set out in the approved Field Development Plan.

“The first oil date has been set for December 2026. We expect, as per the field development plan, that the first export of crude out of Mombasa will happen in Q1 2027,” Kinyua said.

He said the oil discoveries in the South Lokichar Basin were made in 2012, but development was delayed by challenges around the commercial viability of the project.

Kinyua said the current contractor, Gulf Energy and PBV, submitted the Field Development Plan for the two blocks (T6 and T7) on September 30, 2025. Where, EPRA assessed the plan for technical and commercial viability before recommending it to the Energy Cabinet Secretary for approval; the plan then subsequently underwent parliamentary scrutiny and was ratified in February 2026.

He noted that the regulator is now monitoring the development works ahead of the targeted first oil date.

‘So we are currently basically monitoring the development works and can report that the contractor basically is within the timelines that they had given in the field development plan.’ Kinyua said.

Engineer Kinyua said EPRA’s broader mandate is to regulate the energy and petroleum sectors while protecting consumers, investors and other stakeholders and ensuring reliability and security of supply.

Kinyua has also assured Kenyans that measures are in place to prevent fuel shortages amid volatility in global petroleum markets, particularly disruptions affecting major supply corridors in the Middle East.

“On the aspect of security of supply, you know for sure that the supply of petroleum globally has become volatile, because one of the main supply corridors, which is the Middle Eastern corridor, has been affected by civil strife that has been going on. But I think what we’ve done as a regulator is to put in place robust planning, and also to ensure that we work closely with our stakeholders and our suppliers under the government-to-government importation of petroleum, to ensure that we don’t suffer any shortage,” he assured.

He added that Kenya’s Government-to-Government petroleum import arrangement had helped secure supplies while providing fixed premiums and freight charges.

‘I think for the longest time we’ve not had about any shortage. It takes a lot of planning, it takes a lot of coordination between ourselves, our technical teams, the ministry, and the whole of government, to our suppliers in the Gulf, to be able to deliver these products at the pump. And just to say that it has been a very advantageous system for us, because we are enjoying some of the lowest premiums in the world.” He added.

He added that EPRA is also developing regulations to establish strategic petroleum stocks that would supplement the existing minimum operational reserves.

‘Diesel supply at the moment is quite constrained worldwide, and people are loading diesel as far as the Far East. The prices they are getting that product are very high, but our premiums and freight are fixed premiums as per the G2G, and where the world is paying for about $300 a ton, we see we are still paying $84 a ton for petrol, and $97 a ton for JT1, and $78 a ton for diesel. So we will continue collaborating with our suppliers, and we’ll continue working with all stakeholders to ensure that the public is well served in terms of reliability of supply for these products.’’

He noted that under current regulations, oil marketers must maintain stocks equivalent to 25 days of diesel sales and 20 days for super petrol.

‘So we have the minimum operational stocks regulations on the petroleum, which is Legal Notice No. 44 of 2008. This regulation was basically crafted and consented to ensure that the country is adequately covered in terms of security of supply of products. For example, within that regulation, a marketer is supposed to maintain 25-day stock of diesel, based on the sales that they’ve done for the last 180 days. For something like superpetrol, they’re supposed to maintain 20-day stocks.’ Kinyua said.

Kinyua said proposed strategic stocks regulations are under review by the Attorney General and would open the way for private investment in additional petroleum storage facilities.

““We are thinking bigger of even now establishing strategic stocks,”

He also said the proposed Dangote refinery in Lamu would further strengthen Kenya’s petroleum security by providing locally refined products and creating an additional buffer against global supply disruptions.

“I believe the groundbreaking will happen at the end of the month, that will be a big plus for the country in terms of ensuring security of supply. Because that product will be refined within the country. So it means that we’ll have the first right of usage of that product before it is taken to other countries. So it will come as a buffer to the country in terms of petroleum supply. And that, to me, has increased our level of security and reliability of supply of petroleum products.” He noted.

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