Tullow, along with its partners at Africa Oil, said it discovered oil at its Amosing-1 and Ewoi-1 exploration sites in northern Kenya.
Tullow Chief Operating Officer Paul McDade said the results from northern Kenya were "extremely positive."
The company, which has headquarters in London, said it believes the northern Kenyan sites could eventually lead to production levels in excess of 1 billion barrels of oil.
"Given the significant volumes discovered and the extensive exploration and appraisal program planned to fully assess the upside potential of the basin, Tullow and partners have agreed with the government of Kenya to commence development studies [for an oil pipeline]," the company said in a statement Wednesday.
The company said it expected the Kenyan government to sanction the project by 2016 at the latest.
The pipeline is in the pre-development phase and no information was offered regarding its export capacity or length.
Labor strikes in northern Kenya halted Tullow's work briefly in October.