A major milestone has been achieved in Kenya's oil production journey with the arrival of a Sh2.6 billion drilling rig in Mombasa. The GW70 onshore drilling rig, leased by Gulf Energy E&P BV SEZ, docked at Kilindini Port on September 25, 2026, aboard the cargo vessel MV Transit Sedanka. The rig, valued at over US$20 million, was sourced from Great Wall Drilling Company in the United Arab Emirates under a long-term arrangement.
The drilling rig's arrival marks a concrete step forward in Kenya's long-anticipated entry into oil production. The rig will be used for drilling operations in Turkana County, where Kenya firmly roots its oil ambitions. The Kenya Ports Authority is currently handling the offloading process at Kilindini Port. Once offloading wraps up, the rig faces a long road journey by truck, all the way from Mombasa to Turkana County, where drilling preparations are already underway.
Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh confirmed that the equipment will undergo commissioning and acceptance checks before drilling gets underway. The company targets November 1, 2026, for the first well to be drilled as part of the development's initial phase. Limoh stated that all workstreams at Gulf Energy E&P BV SEZ are running to a tight project management schedule, and the project remains on course for First Oil production in December 2026.
The scale of what's riding on this single rig is significant. It's headed for the South Lokichar Basin development, a project valued at KSh774 billion, roughly US$6 billion, ranking it among the largest energy investments anywhere in East Africa. Under the first phase of the project, Gulf Energy plans to produce an initial 20,000 barrels of crude oil per day. The figure is expected to scale up to 50,000 barrels per day during the second phase.
The company has brought in Baker Hughes to deliver Integrated Well Services and contracted SLB to build the Early Production Facility that will support the project going forward. The GW70 previously worked on projects for the Abu Dhabi National Oil Company, where it built a consistent record for safety and reliability. Government projections suggest the South Lokichar fields could generate lifetime revenues of KSh371 billion, approximately US$2.9 billion, over the project's lifespan.
Meanwhile, President William Ruto toured the Dangote Petroleum Refinery in Lekki, Nigeria, ahead of the planned launch of a similar industrial project being developed in Lamu, Kenya. The visit came at the invitation of Dangote Group President and CEO Aliko Dangote as final preparations gather pace for the Kenyan refinery. The Nigerian refinery has a nameplate capacity of 700,000 barrels of crude oil a day and is an integrated complex combining refining, storage, marine infrastructure, and petrochemicals.
Key points
- The drilling rig's arrival marks a major milestone in Kenya's push to commence commercial crude oil production by the end of 2026.
- The South Lokichar Basin development project is valued at KSh774 billion, roughly US$6 billion.
- The project aims to produce an initial 20,000 barrels of crude oil per day, scaling up to 50,000 barrels per day during the second phase.
