EPRA Proposes New Rules, Permit Fees for Oil and Gas Companies

The Energy and Petroleum Regulatory Authority (EPRA) has unveiled draft regulations proposing a new permit regime for upstream petroleum operations, including a schedule of application and approval fees that companies would pay for activities ranging from exploration surveys to production and decommissioning.

Under the Draft Petroleum (Upstream Petroleum Operations) Regulations, 2026, published for public participation, petroleum companies would be required to obtain EPRA’s approval before undertaking key upstream activities.

These will include drilling wells, constructing petroleum facilities, commencing production and decommissioning projects.

Under the draft, EPRA would also be empowered to revise the fees from time to time, with any changes taking effect upon publication on the Authority’s website or in the Kenya Gazette, whichever comes first.

“The Authority may update any and all fees from time to time and the updated fees shall take effect on the day of their publication on the Authority’s website or in the Gazette, whichever occurs first.”

EPRA Proposes New Permit Fees for Oil and Gas Exploration and Production

The proposed regulations introduce fees for approvals and permits across the upstream petroleum value chain.

Companies seeking approval to conduct petroleum surveys would pay USD 5,000, while drilling permits would attract USD 10,000 per well for exploration and appraisal wells and USD 4,000 per development well.

Approval or modification of a field development plan would cost USD 25,000, while companies seeking a permit to construct upstream petroleum facilities would pay USD 20,000. Design approval or modification of construction permits would attract a USD 10,000 fee.

The draft further proposes a USD 20,000 fee for permits to construct or install fixed and mobile offshore platforms, USD 1,000 for test production permits and USD 30,000 for production permits.

Companies applying for plugging and abandonment permits would pay USD 5,000, while permits to decommission or abandon upstream petroleum facilities would cost USD 15,000.

Access to EPRA’s register of permits and approvals would attract a fee of USD 100.

Construction Permits

Under the proposed regulations, companies planning to construct upstream petroleum facilities would have to submit detailed applications supported by engineering designs, environmental approvals, technical specifications, safety documentation and proof of payment of prescribed fees before a construction permit can be issued.

The draft states that applicants “shall not conduct any construction operations prior to obtaining an approval from the Authority.”

EPRA would assess whether the proposed facilities meet the required technical, environmental and safety standards before making a decision on the application.

Public Participation

The draft regulations also introduce public participation before construction permits are issued for upstream petroleum facilities.

The Authority shall arrange for public participation before determining an application for a construction permit.

It further states that “the Authority may at its discretion approve or reject an application and where the application is rejected, provide reasons thereof.”

The requirement is expected to give affected communities and other stakeholders an opportunity to present their views before major upstream petroleum projects receive regulatory approval.

Drilling and Production

Petroleum contractors would also require drilling permits before sinking wells.

The draft provides that companies “shall not commence and conduct drilling operations and drill a well prior to obtaining a drilling permit from the Authority.”

Similarly, companies would require production permits before commencing commercial production.

It states that applicants “shall not commence and conduct any petroleum production operations prior to obtaining an approval from the Authority.”

Permit Transfers

The proposed regulations also place restrictions on the transfer of construction permits.

Companies seeking to transfer permits would first be required to obtain EPRA’s written approval and demonstrate that the proposed transferee has the technical, financial and operational capacity to undertake the petroleum activities.