Kenya’s First Oil Moves Closer as Gulf Energy Receives Onshore Drilling Rig

Kenya’s plan to deliver its first crude oil before the end of the year has reached another milestone after Gulf Energy E&P BV SEZ received an onshore drilling rig at the Port of Mombasa.

Local oil exploration and production firm Gulf Energy E&P BV SEZ 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.

The arrival marks significant progress in Kenya’s first oil production journey, as the company prepares to move the equipment to Turkana County for drilling.

GW70 Rig Arrives as Kenya Prepares for Crude Oil Production

The GW70 rig, valued at more than US$20 million, arrived aboard MV Transit Sedanka after Gulf Energy leased it from Great Wall Drilling Company (GWDC) in the United Arab Emirates (UAE) under a long-term lease arrangement.

Meanwhile, Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh said the Kenya Ports Authority (KPA) is currently offloading the rig equipment ahead of its transfer to Turkana County by road.

The company has scheduled 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, 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.

Also Read: Kenya Shilling Weakens Slightly as Global Oil Prices Decline

South Lokichar Project Targets 20,000 Barrels Daily

During the first phase of the South Lokichar development project, Gulf Energy E&P BV SEZ plans to produce 20,000 barrels of crude oil per day before scaling to 50,000 barrels per day in the project’s second phase.

As a result, the development will position 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.

In addition, the firm has engaged SLB, a leading energy technology and services company, to deliver the Early Production Facility (EPF).

Also Read: Museveni Says Jirongo Informed Him of Middlemen in G-to-G Oil Deal

Rig to Undergo Commissioning Before Drilling

Before drilling begins, the 1,500-horsepower GW70 Onshore rig will undergo procedural commissioning and acceptance checks.

In the UAE, GWDC has been undertaking projects for the Abu Dhabi National Oil Company (ADNOC), maintaining a strong, efficient, and safe operating record.

Beyond production, Kenya stands to gain significant fiscal and economic benefits from the development of the South Lokichar Basin oil fields.

The Government of Kenya projects potential lifetime earnings of more than USD 2.9 billion (Ksh 371 billion), depending on prevailing global oil prices and production volumes over the life of the project.

Gulf Energy E&P BV SEZ, formerly Tullow Kenya BV, is an independent upstream petroleum company under the Gulf Energy Group.

The company applies disciplined engineering and responsible development standards to the South Lokichar Basin Oil Development in Turkana County, which will deliver Kenya’s first commercial crude oil production.

The USD 6 billion investment places the development among the largest in East Africa and establishes Kenya as an oil producer, supporting a stronger and more resilient national energy future.

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Gulf Energy EP BV petrol station in Kenya. PHOTO/ File