Kenya's plan to deliver its first crude oil before the end of the year has reached another milestone with the arrival of a drilling rig at the Port of Mombasa. The rig, valued at over $20 million, was leased from Great Wall Drilling Company in the United Arab Emirates on a long-term lease arrangement. The cargo ship carrying the integrated onshore drilling rig docked at Kilindini Port, Mombasa, after sailing from Duqm Port in Oman.
The GW70 rig will be used for the South Lokichar development project, with Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh stating that the firm plans to produce 20,000 barrels per day in the first phase, scaling to 50,000 barrels per day in the second phase. The project is expected to position Kenya as a significant oil producer in East Africa. The rig equipment is currently being offloaded by the Kenya Ports Authority ahead of its transfer to Turkana County by road.
Gulf Energy E&P BV SEZ has scheduled a spud date of November 1 to kick off the first phase of the $6 billion crude oil production. The firm has contracted Baker Hughes to deliver Integrated Well Services and SLB to deliver the Early Production Facility. The 1,500-horsepower GW70 Onshore rig will undergo procedural commissioning and acceptance checks before drilling begins.
The project is expected to bring significant fiscal and economic benefits to Kenya, with the Government projecting potential lifetime earnings of over $2.9 billion, depending on prevailing global oil prices and production volumes. The South Lokichar Basin oil fields development is a major milestone in Kenya's oil production journey.
The drilling rig has previously undertaken projects for the Abu Dhabi National Oil Company, maintaining a strong, efficient, and safe operating record. The rig's arrival in Mombasa marks a significant step towards Kenya's goal of producing its first crude oil by the end of the year.
Paul Limoh thanked KPA officials for their professional services, noting that the ongoing offload is proceeding smoothly. He also stated that all workstreams at Gulf Energy E&P BV SEZ are running to a tight project management schedule, with the project remaining on course for First Oil production in December 2026.
The project's success is expected to have a positive impact on Kenya's economy, with the government expecting significant revenue from the oil production. The project is also expected to create jobs and stimulate economic growth in the region.
Key points
- The drilling rig's arrival marks a significant milestone in Kenya's first oil production journey.
- The project is expected to produce 20,000 barrels per day in the first phase, scaling to 50,000 barrels per day in the second phase.
- The project is expected to bring significant fiscal and economic benefits to Kenya, with potential lifetime earnings of over $2.9 billion.
