Parliament has opened a public consultation on the Turkana oil field development plan (FDP) following concerns raised by Nairobi Senator Edwin Sifuna about recent contract changes and company ownership shifts.
Speaking on X, Sifuna highlighted issues that could limit the benefits Kenyans derive from the oil project, citing rapid changes in the oil company’s ownership and amendments to production agreements.
The Turkana oil fields, discovered in 2012, have been seen as a potential source of economic growth for Kenya, especially for the northern region.
The government’s FDP outlines how the oil will be extracted, the cost structures, and revenue-sharing arrangements.
Public participation in reviewing the plan is a legal requirement, aimed at ensuring transparency and accountability in resource management.
Sifuna noted that the company set to operate the fields, Gulf Energy—formerly Tullow Oil—changed names and ownership multiple times within weeks.
He described this as “symptomatic of attempts to mask real ownership,” highlighting that the current FDP was approved shortly after these transitions.
The senator also flagged major contract amendments, including a change on November 25, 2025, which increased the maximum recoverable cost for petroleum production from 55% to 85%.
According to Sifuna, such adjustments could delay or reduce government revenue from the project.
Another concern relates to Clause 27(2)(b) of the production contract, which now allows expenditures on labour, fuel, repairs, maintenance, hauling, mobilisation, and related materials to be treated as capital costs.
Sifuna argued this could further diminish Kenya’s share of early returns from the oil.
He added that the agreement exempts Gulf Energy from the Local Content Act, which requires firms operating in the oil sector to prioritise local labour, goods, and services.
The law, passed by the Senate, is intended to ensure that resource development benefits Kenyan workers and suppliers.
Parliamentary committees are currently reviewing public submissions and are expected to assess whether the FDP aligns with national interests.
The Ministry of Energy and Petroleum has not yet issued a response to Sifuna’s concerns. The consultation period allows citizens and stakeholders to provide input before the plan is finalised.