A drilling rig destined for Kenya's first commercial oil production site has docked at Kilindini Port in Mombasa. Gulf Energy E&P BV SEZ confirmed the GW70 drilling rig arrived aboard MV Transit Sedanka after departing from Duqm Port in Oman on September 25, 2026. The rig, valued at over KSh 2.6 billion (US$20 million), will be transported by road to Turkana County ahead of a November 1 spud date.
The 1,500-horsepower rig was leased from Great Wall Drilling Company (GWDC) in the United Arab Emirates under a long-term arrangement. The Kenya Ports Authority (KPA) is currently overseeing the offloading process, after which the equipment will be transported to Turkana County. Gulf Energy E&P BV SEZ chief executive officer Paul Limoh stated that the rig will undergo commissioning and acceptance checks before drilling commences.
The South Lokichar Basin development, estimated at KSh 774 billion (US$6 billion), is among the largest energy investments in East Africa. In its first phase, Gulf Energy E&P BV SEZ targets production of 20,000 barrels per day, with ambitions to scale output to 50,000 barrels per day in a second phase. To support the project, the company has contracted Baker Hughes to deliver Integrated Well Services and engaged SLB to construct the Early Production Facility.
The GW70 rig previously operated on projects for the Abu Dhabi National Oil Company, maintaining a consistent safety and operational record. Kenya's government projects that the South Lokichar fields could generate lifetime revenues of KSh 371 billion (USD 2.9 billion), subject to global oil prices and total production volumes over the project's lifespan.
Gulf Energy E&P BV SEZ confirmed that all workstreams are running to a tight project management schedule, and the project remains on course for first oil production in December 2026. The company's CEO, Paul Limoh, expressed confidence in meeting the project timeline. The drilling rig's arrival marks a significant milestone in Kenya's journey towards becoming an oil-producing nation.
The project's development has been long-anticipated, with Kenya standing to earn substantial revenues from the South Lokichar Basin oil fields. The country's entry into oil production is expected to have a significant impact on its economy. With the drilling rig's arrival, the project is poised to move forward, with the spud date set for November 1, 2026.
Key points
- The drilling rig's arrival marks a significant step towards Kenya's first commercial oil production.
- The project is expected to generate lifetime revenues of KSh 371 billion (USD 2.9 billion) for Kenya.
- The South Lokichar Basin development is estimated at KSh 774 billion (US$6 billion), one of the largest energy investments in East Africa.
