KDRTV NEWS – Turkana County: Kenya has quietly scored a financial win from its long-dormant crude oil ambitions, netting KSh 248.2 million in royalties from early oil exports out of Turkana. This revenue stems from the sale of 350,000 barrels of crude oil shipped by Tullow Oil and its former partners Africa Oil and Total under the Early Oil Pilot Scheme (EOPS), which earned a total of $4 million (KSh 517.2 million). The oil was exported to China and India between 2019 and 2020, with the goal of testing global market interest in Kenya’s “black gold.” Nearly half of that revenue ended up in the national coffers as royalties, offering a much-needed glimmer of promise in Kenya’s delayed oil production dreams.
According to Tullow’s financial disclosures for 2024, Block 10BB emerged as the star, generating $1.103 million (KSh 143 million) in royalties, the lion’s share of Kenya’s crude windfall. While this figure represents just 7.31% of the $26.17 million (KSh 3.38 billion) Tullow paid globally in royalties last year, it marks a significant development for a country that has been stuck in oil production limbo for over a decade. The early exports were part of a two-year program initiated in 2018 to determine the competitiveness of Turkana’s oil on the international stage. Despite hopes that commercial production would follow within two years, the plan stalled leaving billions in projected revenue hanging in the balance.
Now, the tide appears to be turning. In a renewed effort to breathe life into Kenya’s oil ambitions, the National Treasury has ear marked KSh 1.67 billion in the 2025/2026 budget to accelerate commercial production. The allocation includes KSh 890 million for pipeline design and KSh 780 million for oilfield development, more than doubling last year’s budget in both categories. This renewed focus follows Tullow’s decision to sell its Turkana stake to Gulf Energy for KSh 15 billion. Despite exiting, the British firm will continue to benefit from future royalties and retains a free back-in right for a 30% stake in future development phases.
Energy Cabinet Secretary Opiyo Wandayi has confirmed that the South Lokichar Basin’s extraction roadmap is finally gaining traction. With 23 villages now registered for oil extraction and land already demarcated, Kenya’s long-awaited oil chapter might just be about to open with royalties already proving there’s real money in the ground.
