Gulf Energy Secures Ksh 1.9 Billion Onshore Oil Rig Ahead of Kenya’s Oil Project

Local oil exploration and production firm Gulf Energy E&P BV has secured and contracted an onshore oil rig in the Middle East, signalling its corporate commitment to deliver first oil from the South Lokichar Basin before the end of the year.

In a strategic and capital-intensive move, Gulf Energy has secured the GW70 rig, valued at more than US$15 million (Ksh 1.948 billion), from Great Wall Drilling Company (GWDC) in the United Arab Emirates (UAE) on a long-term lease arrangement and is finalising logistical arrangements to ship the rig from Abu Dhabi to Mombasa before the end of next month.

Gulf Energy Chairman Francis Njogu said the firm has reached a contractual arrangement with GWDC to deliver, commission, and operate the rig in the South Lokichar Basin under a performance-based model that will also involve active skills transfer.

He further disclosed that a high-level technical delegation from the Government of Kenya and the Turkana County Government has just finalised a familiarisation and inspection tour of the onshore drilling rig in the Al Dhafra region of Abu Dhabi.

Even as the Gulf Energy awaits the parliamentary ratification of its Field Development Plan (FDP), the firm, he said, had commenced strategic investments, including rig sourcing, ahead of the US$6 billion project kick-off.

Gulf Energy Plans for Kenya

The GW70 Onshore rig with a 1500 horsepower capacity, Njogu said, is expected in Kenya around June, ahead of procedural rig commissioning and acceptance checks to be ready for the start of drilling works (spud) in early July.

In Abu Dhabi, the rig he disclosed has been undertaking projects for the Abu Dhabi National Oil Company (ADNOC) and has clocked what he described as an excellent, efficient, and safe operating record.

Alongside Gulf Energy Executives, the delegation in Abu Dhabi included technical officials from the State Department for Petroleum at the Ministry of Energy and Petroleum, the Energy and Petroleum Regulatory Authority (EPRA), and the Turkana County Government.

“At Gulf Energy, it’s all systems go, in the journey to deliver first oil by December 1st this year. The delegation in Abu Dhabi has witnessed firsthand the advanced state of GW70, an integrated onshore oil field drilling rig which we recently secured,” Njogu said.

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Modern Onshore Drilling

He noted that securing a modern onshore drilling rig marks a significant investment for the company, coming at a time when global demand for such equipment remains high, and mobilisation timelines are increasingly stretched.

Despite these pressures, Gulf Energy says it expects to secure the required legislative and regulatory approvals and has already allocated the necessary capital for the rig.

What Kenya Stands to Gain

In a communique from the UAE, Turkana County Government officials led by County Secretary Dr. Amb. Richard Ekai and Director for Climate Change George Emase said the visit was undertaken following a formal delegation by Governor Dr Jeremiah Ekamais Lomorukai and was intended to ensure that the rig meets the highest industry standards before operations commence.

The delegation described the engagement as both enlightening and productive, noting that it provided valuable insight into the rig’s capabilities and operational preparedness.

Beyond the mechanics and machinery, the team also focused on GWDC’s corporate and environmental credentials, including skills transfer commitments.

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“This inspection forms a crucial part of the quality assurance, performance evaluation, and safety verification process ahead of its deployment to the South Lokichar Basin in Turkana County. During the inspection, the team carried out a detailed technical evaluation of the rig’s operational systems and safety mechanisms. Recommendations were issued to fine-tune readiness and guarantee seamless performance once the rig is mobilised to Turkana,” the communique said.

Kenya stands to gain significant fiscal and economic benefits from the South Lokichar Basin oil fields development, with the Government of Kenya projecting potential earnings between USD 1.05 billion (at USD 60 per barrel) and USD 2.9 billion (at USD 70 per barrel), which translates to Ksh136 billion to Ksh 371 billion over the life of the project.

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Gulf Energy E&P BV Chairman Francis Njogu, Group CEO Paul Limoh, and Country Manager, Franklin Juma appearing at a Joint Parliamentary Committee of Energy meeting. PHOTO/FILE