Kenya has extended the deadline for approving the Turkana oil field development plan to December 31, 2025, marking the third postponement of the long-awaited project.
The latest delay means commercial oil production in the Lokichar basin will likely not begin before 2026, dealing another setback to Kenya's ambitions of becoming an oil-producing nation.
The Ministry of Petroleum and Mining granted operator Gulf Energy additional time to review technical aspects of the field development plan, which outlines how the estimated 560 million barrels of recoverable oil will be extracted and transported.
Speaking on NTV last month, Energy Cabinet Secretary Opiyo Wandayi confirmed that Tullow Oil had sold the asset and operations rights to Gulf Oil.
"Gulf Oil is in the process of finalising the buying of the Kenyan Tullow Oil business. We are hopeful that they are going to put together the necessary financial and technical resources to move the project to the next level," Wandayi assured.
An optimistic Wandayi disclosed that by the end of 2026, the first product from Turkana county will be exported or headed to the coast for refinement.
"Once we are convinced that they have all we want, we are going to approve the Field Development Plan (FDP) that will then usher the door or the commercial phase. By the end of 2026, we will be having the first product from Turkana heading to the coast or export," he added.
The extension follows two previous deadline shifts in 2023 and 2024, when the government cited the need for more comprehensive feasibility studies.
The Turkana oil project, discovered in 2012 by Tullow Oil, has faced numerous challenges including infrastructure gaps, community disputes, and fluctuating global oil prices.
The planned 820-kilometer heated pipeline to Lamu Port remains a critical unresolved component, with financing yet to be secured.
Energy analysts note each delay increases project costs and pushes back potential economic benefits, including expected government revenues of KSh 130 billion annually at peak production.
The new timeline leaves narrow margins for the project to meet its revised first oil target, with construction and testing phases still requiring at least 18 months after final approval.
Local leaders in Turkana have expressed frustration over the stalled development, which promised thousands of jobs and infrastructure improvements for the marginalized region.
The national government maintains the careful approach ensures environmental and social safeguards while creating lasting value for Kenya.
With global energy transitions accelerating, the repeated postponements risk diminishing the commercial viability of Turkana's oil reserves.
Industry observers suggest 2025 may represent a final deadline before reconsidering the project's economic fundamentals.