The Energy and Petroleum Regulatory Authority (Epra) is set to complete its review of the new plan for the commercialisation of the oil in South Lokichar Basin in June, as Kenya inches closer to becoming an oil exporter.
Epra director-general Daniel Kiptoo said the regulator started reviewing the Field Development Plan (FDP) last month and will present its decision to the Cabinet for ratification and then approval from Parliament.
The new FDP for the 10BB and 13T oil fields will enable the government to make a final decision on whether to give Tullow and its partners a go-ahead to start commercial production of the black gold.
British firm, Tullow Oil, and its joint venture partners submitted the revised FDP to the government for approval last month, ending a delay of nearly two years that had extended Kenya’s wait to become an oil exporter.
“We are currently reviewing the Field Development Plan that was submitted to us in March and by June we expect to get back on whether it is viable or not,” Mr Kiptoo said on Tuesday.
“After this review, we shall forward it to the Cabinet for ratification and then Parliament for approval.”
An FDP outlines how an oil company intends to develop a petroleum field, manage the impact on the environment and society, as well as giving forecasts for production and costs.
The new FDP will also pave the way for the compensation of 516 landowners in the project area to relocate and allow start of the commercial production.
Tullow and its partners have several times changed the timelines for the submission of the FDP, delaying Kenya’s push to join the league of oil exporting nations.
Kenya set a December 2021 deadline for Tullow and partners to present an investment plan for oil production in Turkana.
