Kenya’s plan to deliver its first crude oil before the end of the year has reached another milestone with the arrival of the drilling rig at the Port of Mombasa today.
Local oil exploration and production firm Gulf Energy E&P BV SEZ has confirmed that a cargo ship carrying an integrated onshore drilling rig leased by the firm docked at Kilindini Port, Mombasa, after sailing from Duqm Port in Oman, marking significant progress in Kenya’s first oil production journey.
The GW70 rig, valued at more than US$20 million and leased from Great Wall Drilling Company (GWDC) in the United Arab Emirates (UAE) on a long-term lease arrangement, arrived aboard MV Transit Sedanka.
Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh said the rig equipment is currently being offloaded by the Kenya Ports Authority (KPA) ahead of its transfer to Turkana County by road, with the firm scheduling a spud date of 1st November to kick off the first phase of the US$ 6 billion crude oil production. While thanking KPA officials for their professional services, Mr Limoh noted that the ongoing offload is proceeding smoothly.
“All workstreams at Gulf Energy E&P BV SEZ are running to a tight project management schedule, and the project remains on course for First Oil production in December 2026,” Limoh said.
In the first phase of the South Lokichar development project, Gulf Energy E&P BV SEZ plans to produce 20,000 barrels per day before scaling to 50,000 barrels per day in the project’s second phase, positioning Kenya as a significant oil producer in East Africa.
For this first phase, Gulf Energy E&P BV has contracted Baker Hughes, a leading global Oilfield Services and Equipment (OFSE) solutions provider, to deliver Integrated Well Services. The firm has also engaged SLB, a leading energy technology and services company, to deliver the Early Production Facility (EPF).
The 1,500-horsepower GW70 Onshore rig will undergo procedural commissioning and acceptance checks before drilling begins (spud). In the UAE, the GWDC rig has been undertaking projects for the Abu Dhabi National Oil Company (ADNOC), maintaining a strong, efficient, and safe operating record.
Overall, Kenya stands to gain significant fiscal and economic benefits from the South Lokichar Basin oil fields development, with the Government of Kenya projecting potential lifetime earnings of more than USD 2.9 billion (Sh371 billion) depending on prevailing global oil prices and production volumes over the life of the project.
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