Gulf Energy has secured a US$15 million onshore oil drilling rig from the United Arab Emirates, marking a major step toward delivering first oil from the South Lokichar Basin by December 1 this year.
Strategic Rig Acquisition
The company has contracted the GW70 onshore rig from Great Wall Drilling Company under a long-term lease arrangement. The 1,500-horsepower rig, currently in Abu Dhabi, will be shipped to Mombasa by the end of next month before being mobilised to Turkana County.
Gulf Energy Chairman Francis Njogu said the firm has entered into a performance-based contract with the drilling company to deliver, commission and operate the rig, with a strong focus on skills transfer to local personnel.
In Abu Dhabi, the rig has been deployed on projects for the Abu Dhabi National Oil Company and has maintained what Njogu described as an excellent safety and operational record.
Government Oversight and Inspection
A high-level Kenyan delegation comprising officials from the State Department for Petroleum, the Energy and Petroleum Regulatory Authority, and the Turkana County Government conducted an inspection tour of the rig in the Al Dhafra region.
Turkana County Secretary Dr Amb. Richard Ekai, who led the delegation on behalf of Governor Dr Jeremiah Lomorukai, said the visit was aimed at ensuring the rig meets global industry standards before deployment. The team carried out a detailed technical assessment of operational systems and safety mechanisms, issuing recommendations to fine-tune readiness.
Awaiting Parliamentary Approval
The acquisition comes even as Gulf Energy awaits parliamentary ratification of its Field Development Plan for the estimated US$6 billion South Lokichar project. Despite pending approvals, the company has already allocated capital and commenced early-stage investments.
The rig is expected in Kenya around June, with commissioning and acceptance checks scheduled ahead of drilling works set to begin in early July.
Kenya stands to reap significant economic benefits from the project, with government projections estimating earnings of between US$1.05 billion and US$2.9 billion over the life of the oil fields, depending on global crude prices.