Irish oil and gas company Tullow Oil has paid KSh 247.9 million (approximately $1.915 million) in royalties to the Government of Kenya in 2024, following crude oil exports under the country’s Early Oil Pilot Scheme (EOPS) in Turkana County.
According to Daily Nation, the royalties were derived from crude oil sales in the South Lokichar Basin, where Block 10BB contributed the highest share at $1.103 million, followed by Block 13T with $674,000, and Block 10BA at $138,000.
Launched in 2018, the Early Oil Pilot Scheme was designed to assess the viability of Kenya’s oil reserves and global market reception of its crude exports, transported via the port of Mombasa.
The pilot also sought to lay the groundwork for future commercial oil production in the East African country.
Between 2019 and 2020, Tullow Oil, alongside former joint venture partners Africa Oil and TotalEnergies, exported 350,000 barrels of Turkana crude.
A total of $4 million was generated in revenue during the period.
Key buyers included India and China, with the expectation of spurring large-scale commercial operations.
However, despite the pilot’s initial success, commercial production has yet to commence, largely due to a lack of investment.
The exit of key players—TotalEnergies and Africa Oil in May 2023, and Tullow’s announced exit in April 2025—has left the project in a fix.
Tullow is in the process of selling its Kenyan assets to Gulf Energy Ltd in a $120 million deal that includes future royalty entitlements and a 30% cost-free stake in any future development.
Tullow’s royalty payment to Kenya in 2024 accounts for nearly half of its projected revenue from crude oil sales for the year.
It also represents 7.31% of the total $26.17 million royalty that the indebted company paid globally, indicating the significance of its Kenyan portfolio.
Nonetheless, Tullow’s payments have caused local disputes over revenue transparency and community benefits.
Community Land Management Committees (CLMCs) from Kapese, Lokichar, and Kasuroi have questioned the allocation of royalties and called for the creation of a dedicated community fund, as required by the Community Land Act of 2016.
Civil society groups and local leaders have also criticized the government’s decision to integrate the funds into the general budget, warning that this approach undermines local development goals and accountability.
Despite ongoing tensions, the Kenyan government has announced plans to approve the Turkana oil project’s field development plan (FDP) by the end of June 2025.
However, uncertainty remains over the project’s future, especially with the ownership transition still in progress.
