Kenya is moving closer to commercial oil production after Gulf Energy leased a high-capacity onshore drilling rig from the United Arab Emirates, setting a clear path toward extracting the country’s first commercial oil in the South Lokichar Basin.
Gulf Energy E&P BV, which took over the Turkana oil project, has secured an onshore rig from the Middle East, giving renewed drive to Kenya’s delayed petroleum plans. The move prepares the project for drilling to begin in early July with a target of delivering the nation’s first commercial oil before the end of the year.
This marks an economic step for the country. The shift from years of exploration and delays to active drilling brings the US$6.1 billion investment planned over a 25-year period closer to reality, while the mobilization of the rig signals to Turkana County and the national economy that anticipated oil revenues are drawing nearer.
In a market update released on Friday, February 20, Gulf Energy confirmed it had contracted the GW70 rig from the Great Wall Drilling Company based in the United Arab Emirates. The 1,500-horsepower rig, valued at over US$15 million, was secured under a long-term lease and has previously operated on projects for Abu Dhabi National Oil Company.
Chairman Francis Njogu said logistics teams are arranging shipment of the rig from Abu Dhabi to the Port of Mombasa before the end of March. Once it arrives, the company will carry out commissioning and acceptance checks through June to prepare for spud operations scheduled for early July.
Njogu said the company is focused on delivering first oil by December 1 and added that a delegation in Abu Dhabi had inspected the GW70 rig, describing it as an integrated onshore drilling unit ready for deployment.
source:streamlinefeed.co.ke
African Energy Council