This archive report was first published on 20 August 2021.
Kenya Electricity Generating Company PLC (KenGen) has made significant strides in its geothermal drilling contract in Ethiopia, marking a crucial stage in the project.
As of August 20, 2021, the team of KenGen engineers had successfully crossed the 450-meter drilling depth of the first of eight geothermal wells for the state-owned electricity producer, Ethiopia Electric Power Company.
"The first 450 meters is the most difficult phase of the entire geothermal well drilling process, which can go up to a depth of 3,000 meters," said Managing Director and CEO, Rebecca Miano, adding that the drilling was being done under peculiar circumstances, including unforeseen delays occasioned by the COVID-19 pandemic.
"We will be drilling at a rate of about 50 meters per day going forward and therefore expect to complete the remaining part on schedule in about two months," said Mrs. Miano.
KenGen won a joint contract with Shandong Kerui Petroleum Equipment Company and Shandong Kerui Oilfield Service Group in February 2019 to offer geothermal drilling services.
The project is being managed between the two consortium members under the contract.
KenGen is hopeful that under the ongoing project, which is financed by the World Bank through a loan to the Ethiopian Government, depending on the outcomes of Lot 1 wells, an additional 12 wells may be drilled under Lot 2 of the contract to bring the total to 20 wells.
KenGen has also completed drilling two geothermal wells for Tulu Moye Geothermal Operations PLC (TMGO) in Ethiopia and is currently drilling the third well under a contract signed in October 2019.
These projects are part of the Company's diversification strategy, which has led to the organization's expansion in the Horn of Africa, including a Ksh.709 million project to offer commercial drilling services in Djibouti.
