Kenya\u2019s long-awaited transition from oil exploration to commercial production in the South Lokichar Basin has entered a new and contentious phase as the Senate invites public submissions on the proposed Field Development Plan (FDP) and associated Production Sharing Contracts (PSCs) for oil Blocks T6 and T7 in Turkana County. This marks a significant step in the effort to unlock the commercial potential of Kenya\u2019s indigenous oil resources but has also triggered public debate over governance, transparency, and national benefit. <\/p>\n\n\n\n
The Field Development Plan outlines how Gulf Energy E&P B.V. under various ownership changes intends to develop six commercial oil discoveries within the basin and produce crude for domestic use and export. The approved plan targets phased production with first oil expected by December 2026 and eventual output levels that could reach tens of thousands of barrels per day, backed by a projected investment of approximately USD 6.1 billion over the contract\u2019s lifespan.<\/p>\n\n\n\n
From the government\u2019s vantage point, the approval of the FDP and revised contract terms signals renewed momentum for an oil industry stalled by years of financing and regulatory hurdles. The plan includes major logistical and fiscal adjustments, such as moving the crude lifting point to Turkana and extending broad tax and duty exemptions<\/a> for Gulf Energy and its subcontractors. These measures are designed to lower operating costs and enhance project viability in a global energy market often wary of frontier ventures.<\/p>\n\n\n\n Officials project that successful implementation could create jobs in Turkana and related sectors, boost local infrastructure, and contribute to Kenya\u2019s long-term energy security. Supporters argue that building a domestic oil industry, from extraction through to export, represents an important diversification of the national economy.<\/p>\n\n\n\n In accordance with constitutional and legislative requirements, the Senate Standing Committee on Energy has opened a formal window for public engagement, inviting written memoranda from citizens, civil society, and stakeholders ahead of the January 16, 2026 deadline. <\/p>\n\n\n\n However, the process has been met with vocal criticism from political figures and some civil society actors, notably Nairobi Senator Edwin Sifuna. In a statement posted on social media, Senator Sifuna described the deal terms and rapid sequence of contract amendments as \u201cthe biggest scandal yet\u201d and expressed concern that Kenyans might see limited benefit from the nation\u2019s oil resources. <\/p>\n\n\n\n