The Energy and Petroleum Regulatory Authority (EPRA) has unveiled seven draft regulations aimed at creating a better environment in Kenya’s upstream and midstream petroleum value chains.
The proposed regulations include the Petroleum (Upstream Management and Administration) Regulations and the Petroleum (Upstream Operations) Regulations, which detail procedures for block allocation, permit issuance, and the conduct of exploration, appraisal, and production operations. In addition, the Upstream Petroleum Costs Management Regulation will provide a structured approach to cost recovery, ensuring efficiency, fairness, and prudent use of resources.
A separate Local Content Regulation requires international companies to partner with Kenyan firms, train local staff and include multi-year research and development plans in collaboration with Kenyan institutions. The midstream portfolio adds a Pipeline and Storage Operations Regulation, setting safety and technical standards for crude oil and gas transport and storage. The Draft Petroleum (Upstream and Midstream Environment, Health and Safety) Regulations, 2025, which applies to both upstream and midstream activities, aims at enhancing Kenya’s preparedness to manage and mitigate operational risks while safeguarding the environment and human well-being.
The upstream regulations are crafted to enhance Kenya’s revenue and profitability from oil by standardising fiscal reporting, tightening cost controls and mandating research initiatives.
Speaking during the public participation forum convened in Nairobi, EPRA Director General Daniel Kiptoo Bargoria said these draft regulations will ensure responsible resource management, attract investments and protect local communities and the environment.
“These regulations are guided by four main objectives: to promote fair business practices where everyone can invest and benefit; to ensure quality and safety across the value chain; to safeguard environmental sustainability through responsible activities; and to enable the collection of reliable data across the entire upstream and midstream petroleum value chain to support evidence-based policymaking,” said Mr Kiptoo.
The draft regulations are available on the EPRA website here epra.go.ke/upstream-petroleum-regulatory.
In 2012, Kenya announced the discovery of four billion barrels of oil reserves in the Lokichar region in Turkana. This was followed by the development of various oilfields, most notably the Lokichar oil field, which holds an estimated 560 million barrels of oil. Currently, plans for commercial production are on course, where 80,000 barrels per day are set for transportation via the soon-to-be-completed Lokichar-Lamu pipeline.