Kenya has invited proposals for a commercial trading name for crude oil from the South Lokichar Basin in Turkana County as Nairobi-based Gulf Energy targets December 1 for the start of production, more than 14 years after the resource was discovered.
The State Department for Petroleum opened the naming exercise on October 23, with submissions due by 5pm on October 29, according to a notice published by the Energy and Petroleum Regulatory Authority (EPRA).
The name is intended to identify Kenyan crude in international trading, shipping and price reporting, following established grades such as Brent and Nigeria’s Bonny Light. Proposals must be distinctly Kenyan and easy to pronounce, represent the whole country rather than a single county, community or company, be free of political, religious or divisive associations and be available for trademark registration in Kenya and internationally.
Gulf Energy plans to begin drilling on November 1, with first oil targeted for December 1, Business Daily reported on October 24. Production from Blocks T6 and T7, formerly 10BB and 13T, is expected to reach 20,000 barrels per day (bpd) during the first phase, covering 2026–2032, before increasing to 50,000 bpd from 2033. These are development targets, not confirmed start-up volumes.
Initial production will focus on the Ngamia and Amosing fields, with crude transported by insulated road tankers to the Kenya Petroleum Refineries Limited facility at Changamwe, Mombasa, for export through the Kipevu Oil Terminal II.
The arrangement avoids waiting for an export pipeline but requires temperature-controlled transport and heated storage because of the crude’s high wax content. The Changamwe facility has belonged to Kenya Pipeline Company (NSE:KPC) since a 2023 share transfer, and Nigeria’s Dangote group confirmed this month that it had bought a 24.76% stake in KPC for $327mn.
See IntelliNews: Nigeria’s Dangote confirms $327mn purchase of 24.76% stake in Kenya Pipeline Company
The export timetable remains uncertain. EPRA petroleum and gas director Edward Kinyua said in September that the first export cargo was expected in the first quarter of 2027, in line with the field development plan, according to the Kenya News Agency. President William Ruto said on October 20 that sales to foreign buyers would begin in December.
Energy Cabinet Secretary Opiyo Wandayi said on October 23 that crude should begin moving from South Lokichar to Mombasa for export from the beginning of December, while Senate energy committee chairman William Kisang said Kenya was on course to export its first crude on December 1, The Star reported. No confirmed shipment date has reconciled the statements.
See IntelliNews: Kenyan president targets December oil exports, ahead of regulator EPRA’s 2027 timetable
The project also faces community grievances. Turkana elders warned earlier in October that they could obstruct extraction and transportation over alleged unpaid compensation.
Kenya’s National Gender and Equality Commission separately reported complaints about land acquisition, consultation and possible displacement near Amosing. Chairwoman Rehema Jaldesa said approximately 3,600 people faced compulsory land acquisition and called for fair compensation and greater local economic participation. Gulf Energy’s social performance manager, John Eris Lothike, said the company was committed to supporting host communities. The status of disputed compensation claims remains unclear.
Gulf Energy acquired the project from Tullow Oil (LSE:TLW; GSE:TLW) through affiliate Auron Energy E&P Limited in September 2025 for minimum consideration of $120mn, partly deferred. Tullow subsequently received an additional $9mn for relinquishing its royalty and future participation rights.
See IntelliNews: Tullow Oil to exit Kenya with $120mn Gulf Energy deal
Parliament ratified the revised field development plan in February 2026, although parliamentary disclosures identified requirements to transfer the environmental and social impact assessment licence from Tullow and conduct supplementary assessments for the revised development and transport arrangements. Their completion status has not been confirmed.
A drilling rig leased from the UAE’s Great Wall Drilling Company arrived at Mombasa on September 25, and Kisang said it had since been delivered to South Lokichar, according to The Star.
Oil was discovered in South Lokichar in 2012, and Kenya exported a pilot shipment of about 200,000 barrels in August 2019 under its Early Oil Pilot Scheme, but sustained commercial production did not follow.
See IntelliNews: Kenya allocates $12.90mn to revive stalled Turkana oil project
The government has not announced when the trading name will be selected or whether a binding export sales contract has been concluded. The naming exercise does not itself establish regulatory clearance, production readiness or a confirmed buyer.