Gulf Energy Secures US$15M Rig to Fast-Track South Lokichar Oil Project
Local exploration and production company Gulf Energy E&P BV has contracted an onshore drilling rig from the Middle East as part of its plan to begin crude oil production from the South Lokichar Basin before the end of the year.
The company has secured the GW70 drilling rig, valued at more than US$15 million, from Great Wall Drilling Company under a long-term lease agreement. Gulf Energy is now finalising logistics to transport the equipment from Abu Dhabi to Mombasa next month.
According to Gulf Energy Chairman Francis Njogu, the company has entered a performance-based contract with GWDC covering rig delivery, commissioning, and operational deployment in the South Lokichar Basin, accompanied by technical skills transfer arrangements.
A high-level technical delegation from the Government of Kenya and Turkana County Government recently completed an inspection and familiarisation visit to the rig stationed in the Al Dhafra region of Abu Dhabi.
The company has begun strategic investments ahead of the anticipated US$6 billion oil development project, even as it awaits parliamentary approval of its Field Development Plan (FDP). Preparations have already started for equipment sourcing and project mobilisation.
The 1500-horsepower GW70 onshore rig is expected to arrive in Kenya around June, followed by commissioning and technical acceptance tests to ensure readiness for drilling operations scheduled to begin in early July.
The rig has previously been deployed in projects operated by Abu Dhabi National Oil Company (ADNOC), where it recorded strong performance in efficiency, safety, and operational reliability.
The inspection delegation included officials from the State Department for Petroleum – Kenya, the Energy and Petroleum Regulatory Authority (EPRA), and Turkana County technical teams.
Njogu affirmed that Gulf Energy is on course to deliver first oil by December 1 this year, noting that acquisition of modern drilling technology reflects the company’s response to global demand for advanced oilfield equipment and the need to maintain high operational standards.
Officials from Turkana County, led by County Secretary Dr. Amb. Richard Ekai and Climate Change Director George Emase, said the inspection was conducted following a directive from Governor Jeremiah Ekamais Lomorukai to ensure the rig meets international safety and technical standards before deployment.
The technical assessment focused on operational readiness, safety systems, and environmental compliance, with the team also reviewing the company’s sustainability commitments and capacity for local skills development.
Kenya expects substantial fiscal and economic returns from the South Lokichar Basin oil project, with projections estimating government revenue between US$1.05 billion a