Gulf Energy E&P BV has reaffirmed plans to invest nearly KES 774 billion (US$6 billion) in Kenya’s South Lokichar oil development in Turkana County and said it is targeting first crude production by December 1, 2026, as Parliament prepares to consider the project’s Field Development Plan (FDP) and production-sharing agreements.

Gulf Energy E&P BV Chairman Francis Njogu made the commitments while appearing before a Joint Parliamentary Committee of Energy meeting held as part of a public participation process ahead of the FDP ratification. The session was jointly chaired by National Assembly Departmental Committee on Energy chair David Gikaria and Senate Standing Committee on Energy vice chair Senator William Kisang.

The company is seeking parliamentary ratification in the coming weeks, a step it says is necessary to advance the project toward a Final Investment Decision (FID) and eventual production.

The South Lokichar project, located in Turkana County, is viewed as Kenya’s most advanced onshore oil development following years of exploration and appraisal in the basin. Gulf Energy told lawmakers the FDP and the production-sharing agreements place emphasis on local content, community engagement and alignment of benefits among stakeholders.

Njogu said the company’s plans include what it described as strict adherence to a “ring-fenced Local Content Strategy” and social investments intended to generate longer-term socio-economic benefits for Turkana and the wider economy.

“At Gulf Energy, we are approaching this FDP as Kenyans with a view to creating as many jobs and business opportunities for Kenyans, starting with our Turkana host community, as are committed to positioning Kenya as an oil-producing country. We are very ready, and we have set 1st December, 2026, as a target to produce oil, and we hope to expeditiously secure the FDP ratification,” Njogu said.

He told the committee Gulf Energy E&P BV is indigenously owned and has “strong financial resources” to support capital-intensive developments. Njogu added that the company has “robust financial partnerships and active lines of credit with leading local and international banking and financial institutions,” though he did not name the lenders.

“The South Lokichar project and the FDP we have presented to the Government present a technically mature pathway to unlock Kenya’s largest onshore petroleum development in a shared prosperity model,” Njogu said.

The company also referenced a cost recovery proposal included in the FDP, which it said had been approved by Cabinet Secretary for Petroleum and Energy Opiyo Wandayi in November. Njogu said the fiscal measures proposed in the FDP are required to meet investment and bankability thresholds for the FID.

On government revenues, the press release cited projections by the Government of Kenya of potential earnings ranging between KES 135.45 billion (US$1.05 billion at US$60 per barrel) and KES 374.1 billion (US$2.9 billion at US$70 per barrel) over the project’s life.

Njogu urged lawmakers to move quickly, arguing that the global financing environment for upstream oil is tightening. He said international lenders are increasingly restricting hydrocarbon financing in line with climate commitments and shifting capital toward lower-carbon energy.

“As a result, frontier oil projects such as South Lokichar must demonstrate strong economics, robust fiscal stability, and timely decision-making to remain competitive for capital. Any prolonged uncertainty risks placing Kenya at a disadvantage relative to other emerging oil provinces that are actively adjusting their fiscal terms to secure investment before this window closes,” he said.

Under the production-sharing contract framework, Njogu said the State retains ownership of the resource while the contractor provides technical capability and risk capital to bring it to production.

Parliament is expected to deliberate on the FDP and the production-sharing agreements before deciding on ratification in the coming weeks.