Kenya: Gulf Energy Receives Drilling Rig in Mombasa As Kenya Targets First Oil in Dec

Nairobi — Kenya's pursuit of commercial crude oil production by the end of 2026 has advanced with the arrival of a drilling rig for the South Lokichar oil project at the Port of Mombasa. Gulf Energy E&P BV SEZ announced the rig's arrival on Friday via the MV Transit Sedanka from Duqm Port in Oman. The rig, valued at over $20 million, is set to enable drilling operations in Turkana County, with the company aiming to commence drilling on November 1, 2026, as part of the initial phase of the South Lokichar development.

Gulf Energy E&P BV SEZ CEO Paul Limoh confirmed the equipment was offloaded by the Kenya Ports Authority and will be transported by road to Turkana. Limoh stated that project management remains on track for the First Oil production in December 2026. The GW70 rig, leased from Great Wall Drilling Company, will undergo commissioning and acceptance checks prior to drilling.

Gulf Energy plans to produce an initial 20,000 barrels of crude oil daily during the first phase, scaling up to 50,000 barrels per day in the second phase. The South Lokichar development is backed by a $6 billion investment program. Kenya has set December 2026 as the target for the first oil extraction from the South Lokichar Basin, with crude exports expected in Mombasa starting in Q1 2027.

The project's fiscal benefits could reach over $2.9 billion (Sh371 billion) over its lifetime, contingent on oil prices and production volumes. The arrival of the drilling rig in Mombasa now paves the way for its transportation to Turkana, commissioning, and the planned initiation of drilling on November 1. The South Lokichar project is poised to signify Kenya's transition from an exploration country to a commercial crude oil producer.