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Kenya

Parliament to ratify Turkana oil, gas extraction deal by Gulf Energy

NAIROBI, Kenya, Nov 7 – Parliament is set to ratify the extraction of oil and gas in Turkana by Gulf Energy E&P B.V., paving the way for Kenya’s long-awaited commercial production phase in the region.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi said his ministry has approved the Field Development Plan (FDP) for the project, marking a major milestone toward operationalizing Kenya’s petroleum resources.

“In accordance with Section 10(j) of the Petroleum Act, 2019, I have approved the Field Development Plan for the Turkana oil presented by Gulf Energy E&P B.V.,” Wandayi said during a visit to Turkana.

“I will now proceed within 30 days to present the FDP to Parliament for ratification, under Article 71 of the Constitution,” he added.

The approval comes less than two months after Tullow Oil Plc sold its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, following the fulfillment of all conditions under the Sale and Purchase Agreement (SPA) announced on July 21, 2025.

Tullow, in a statement published on the London Stock Exchange, confirmed receipt of the first payment of $40 million under Tranche A of the SPA. Two more payments of $40 million each are expected in 2026 and 2028, respectively.

The British firm said the proceeds from the sale will help strengthen its balance sheet, while it retains royalty payments and a no-cost back-in right for a 30 percent participation in future development phases.

The parliamentary ratification will mark a decisive step in reviving Kenya’s oil ambitions, which have faced years of delay over commercial, logistical, and ownership challenges. If approved, Gulf Energy’s entry is expected to accelerate field development and position Turkana as a key contributor to Kenya’s energy and export portfolio.

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