Kenya’s first oil production moves closer as Gulf Energy E&P BV SEZ onshore drilling rig arrives in Mombasa

Kenya's ambition to generate its first crude oil before the year's end advanced significantly as the onshore drilling rig arrived at Mombasa's Port today. Gulf Energy E&P BV SEZ, the local firm spearheading the ambitious project, confirmed the arrival of the $20 million+ integrated onshore drilling rig through a cargo ship from Duqm Port in Oman.

Named GW70, the rig was procured from Great Wall Drilling Company (GWDC) in the UAE and is now being offloaded by the Kenya Ports Authority. The rig's transfer to Turkana County for drilling is scheduled for November 1st, marking the beginning of the US$6 billion crude oil production phase. CEO Paul Limoh assured that the project is on schedule for its target First Oil production in December 2026.

The first phase of the South Lokichar development project aims to produce 20,000 barrels of oil per day, with the potential to scale to 50,000 barrels in the second phase, positioning Kenya as a notable oil producer in East Africa. The project is contracted to Baker Hughes for Integrated Well Services and SLB for the Early Production Facility.

The arrival of the drilling rig in Mombasa is a crucial step towards generating significant fiscal and economic benefits for Kenya, with the Government projecting lifetime earnings of over USD 2.9 billion depending on global oil prices and production volumes.