Kenya Targets First Oil by Year-End After Gulf Energy Leases GW70 Rig for South Lokichar Basin
Kenya is moving closer to achieving its first commercial oil production following the decision by Gulf Energy E&P BV to lease a high-capacity onshore drilling rig for operations in the South Lokichar Basin.
Gulf Energy, which assumed control of the Turkana oil project, has contracted the GW70 onshore rig as part of efforts to accelerate development of the long-delayed petroleum venture.
The company is targeting the start of drilling operations in early July, with an objective of delivering Kenya’s first commercial oil before the end of the year.
Rig Contract and Mobilization
In a market update issued on February 20, Gulf Energy confirmed it had secured the GW70 rig from Great Wall Drilling Company.
The 1,500-horsepower rig, valued at more than $15 million, has previously operated on projects for Abu Dhabi National Oil Company (ADNOC).
The equipment has been leased under a long-term agreement to support the South Lokichar development program.
According to Chairman Francis Njogu, logistics teams are coordinating shipment of the rig from Abu Dhabi to the Port of Mombasa by the end of March.
Upon arrival, the rig will undergo commissioning, inspection, and acceptance testing through June ahead of spudding activities scheduled for early July.
Economic Significance
The renewed drilling campaign represents a pivotal step for Kenya’s upstream sector. After years of exploration activity and project delays, the transition to active development brings the estimated $6.1 billion investment plan spread over a 25-year period closer to implementation.
Mobilization of the GW70 rig also sends a strong signal to Turkana County and the broader national economy that anticipated oil revenues may soon materialize.
Gulf Energy has set an internal target of achieving first oil by December 1, subject to operational and regulatory timelines.
Company officials have described the GW70 as a fully integrated onshore drilling unit ready for deployment, following inspection by a technical delegation in Abu Dhabi.
