Kenya’s plans to begin commercial crude oil production by the end of 2026 have advanced with the arrival of an onshore drilling rig at the Port of Mombasa.
Gulf Energy E&P BV SEZ leased the GW70 drilling rig from Great Wall Drilling Company (GWDC). The rig arrived at Kilindini Port after travelling from Duqm Port in Oman aboard MV Transit Sedanka. Valued at more than Ksh2.59 billion (USD20 million), the rig is being offloaded by the Kenya Ports Authority before it is transported by road to Turkana County for drilling activities in the South Lokichar Basin.
Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh said drilling is scheduled to start on November 1, with the company targeting first oil production in December 2026. He said the project is following its planned schedule as the company prepares for production.
Gulf Energy plans to produce 20,000 barrels of crude oil per day during the first phase of the project and increase production to 50,000 barrels per day in the second phase. The first phase forms part of the wider Ksh776.7 billion (USD6 billion) development of the South Lokichar Basin, with Gulf Energy investing in infrastructure, equipment, and other facilities needed for commercial production.
Gulf Energy has contracted Baker Hughes to provide integrated well services, while SLB will supply the Early Production Facility for the first phase of the development.
The 1,500-horsepower GW70 rig will undergo commissioning and acceptance checks before drilling starts. The rig has previously been used on projects for Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.
The rig’s arrival comes as Kenya prepares to commercialize its oil resources. The government estimates that the South Lokichar Basin could generate more than Ksh375.7 billion (USD2.9 billion) over its lifetime, depending on oil prices and production levels. Kenya is also considering plans for a proposed Ksh1.94 trillion to Ksh2.07 trillion (USD15 billion to USD16 billion) refinery in Lamu, backed by investor Aliko Dangote.
The proposed Lamu refinery could process up to 700,000 barrels of crude oil per day. However, securing sufficient crude supplies remains a challenge because Kenya has not yet started commercial oil production.
Oil exploration in the South Lokichar Basin dates back to 2012, when Tullow Oil announced the first major discovery at the Ngamia-1 well. Initial estimates placed the basin’s recoverable resources at around 560 million barrels.
The basin has previously been estimated to contain up to 4 billion barrels of oil in place. However, only part of those resources is considered technically and economically recoverable.
source: https://www.kenyans.co.ke/
African Energy Council