Business

Concerns Rise Over Turkana Oil Deal Terms in Kenya Senate Review

The Senate Energy Committee in Kenya has opened the door for public comments on the South Lokichar Field Development Plan and related contracts for oil blocks T6 and T7 in Turkana County. Documents were tabled on November 27, 2025, and people can send written views until January 16, 2026.

This plan covers commercial production from six oil discoveries in the South Lokichar Basin. Gulf Energy E&P BV, a Kenyan company, now holds the blocks after buying them from Tullow Oil in a deal completed in September 2025. The government hopes for first oil by late 2026 or 2027.

Some changes in the contracts draw attention. The cost recovery limit for the company rose from around 55-65 percent to 85 percent in a November 25, 2025, amendment.

That means Gulf Energy can recover more expenses from oil sales before Kenya gets its share of profits. Another change expanded what counts as recoverable costs, including things like labor, fuel, repairs, and even decommissioning.

Nairobi Senator Edwin Sifuna spoke out strongly against these terms. He called the deal potentially the biggest scandal under President William Ruto. Sifuna pointed to quick ownership shifts in the company, saying it looks suspicious and might hide real owners.

He also said the agreement exempts Gulf Energy from parts of the new Local Content Act, which pushes for using Kenyan workers and supplies.

Sifuna urged people to read the documents and submit views. He worries Kenyans, especially in Turkana, might see little benefit from the oil.

Supporters of the plan say the concessions help attract investment after years of delays under Tullow.

They point to possible jobs, roads, and other infrastructure in the area. Turkana has waited since oil finds in 2012 for real production to start.

The public participation follows rules in the Constitution and Petroleum Act. The Senate must review before final approval.

Oil in Turkana could bring billions in value over time. But past projects faced issues like community concerns over land and environment.

Locals in Turkana have mixed feelings. Some want quick development for work and services. Others push for fair shares and protection.

This review gives a chance for input from across Kenya. Views go to the Senate clerk. For now, the process moves forward. What happens next depends on feedback and committee work.

Leave Comment