Kenya’s inaugural oil production initiative has reached a critical phase with the arrival of a $20 million onshore drilling rig at Mombasa’s Kilindini Port, according to Gulf Energy E&P BV SEZ. The GW70 rig, leased from the United Arab Emirates-based Great Wall Drilling Company (GWDC), was transported aboard the MV Transit Sedanka from Oman’s Duqm Port. The rig’s arrival follows a long-term lease agreement and is poised to initiate the first phase of the $6 billion South Lokichar project, with a scheduled spud date of November 1, 2024. Gulf Energy CEO Paul Limoh confirmed the rig’s offloading by the Kenya Ports Authority (KPA) and emphasized the project’s adherence to its timeline for achieving First Oil in December 2026.
The South Lokichar development, led by Gulf Energy E&P BV SEZ, aims to produce 20,000 barrels per day in its initial phase, scaling to 50,000 barrels daily in subsequent stages. The project has secured partnerships with global energy firms, including Baker Hughes for integrated well services and SLB for the Early Production Facility (EPF). The GW70 rig, previously deployed for Abu Dhabi National Oil Company (ADNOC) projects, is undergoing commissioning checks before commencing operations. Limoh highlighted the project’s alignment with Kenya’s economic goals, stating, “All workstreams are running to a tight project management schedule, and the project remains on course for First Oil production in December 2026.”
The South Lokichar Basin’s development is projected to generate over $2.9 billion (KES 371 billion) in lifetime revenue for Kenya, contingent on global oil prices and production levels. The project’s phased approach underscores its strategic importance for East Africa’s energy landscape, with Gulf Energy E&P BV SEZ positioning Kenya as a regional oil producer. The rig’s deployment follows extensive preparatory work, including infrastructure development in Turkana County, where the drilling will occur. Local and international stakeholders have emphasized the project’s potential to boost Kenya’s fiscal revenues and diversify its economic base.
Kenya’s energy sector now awaits the rig’s transfer to Turkana County and the commencement of drilling, which will determine the project’s trajectory. The Government of Kenya has framed the South Lokichar initiative as a cornerstone of its economic transformation strategy, while environmental and community impact assessments remain ongoing. With the GW70 rig on site, the focus shifts to operational readiness, as Gulf Energy E&P BV SEZ aims to meet its 2026 production targets and solidify Kenya’s entry into the global oil market.