The government of Kenya has signed Heads of Term agreements with Tullow Oil, Africa Oil Corp. and Total for the development of a crude oil processing facility in the northwest of the country. The processing facility would have a capacity of 60,000 to 80,000 bbl/d and would tap oil resources from the Blocks 10 BB and 13T in South Lokichar Basin. Crude oil production could start in 2023 at the earliest, i.e. three years after the final investment decision (FID).
Tullow Oil and its partner Africa Oil discovered commercial oil reserves in the Lokichar basin in 2012 and reached an agreement with the government and Moller Maersk for the construction of an 891 km long oil export pipeline in 2016. They are working towards a FID that is expected in 2020. Oil reserves in Kenya are estimated at 2,200 mbl (2017). In March 2019, the president of Kenya signed a long-awaited petroleum bill into law to regulate the domestic oil exploration and production activities; the legislation set out and regulates how oil revenues will be shared between the government, county governments, local communities and exploration and production companies.