Kenya’s First Oil Production Moves Closer as Drilling Rig Arrives in Mombasa

Kenya’s long-delayed journey toward commercial oil production has taken another step forward after a major onshore drilling rig arrived at the Port of Mombasa ahead of planned drilling in Turkana County.

The GW70 drilling rig, operated under a long-term lease arrangement with Great Wall Drilling Company (GWDC), arrived at Kilindini Port on September 25 aboard the MV Transit Sedanka, according to Gulf Energy E&P BV SEZ, the independent upstream petroleum company formerly known as Tullow Kenya BV.

The arrival provides a key piece of equipment for the development of the South Lokichar Basin, where Kenya is targeting its first commercial oil production later this year.

The 1,500-horsepower rig is valued at more than KSh2.6 billion ($20 million) and was transported to Kenya from Duqm Port in Oman.

Rig to be transported to Turkana

The Kenya Ports Authority is overseeing the offloading operation at Mombasa before the rig is transported by road to Turkana County.

Once it reaches the project area, the equipment will undergo commissioning and acceptance checks before drilling begins.

Gulf Energy E&P BV SEZ has set November 1, 2026, as the planned spud date — the point at which drilling of a new well is scheduled to begin.

Paul Limoh, chief executive officer of Gulf Energy E&P BV SEZ, said the company was maintaining its project schedule.

“All workstreams at Gulf Energy E&P BV SEZ are running to a tight project management schedule, and the project remains on course for first oil production in December 2026,” Limoh said in a statement.

The company’s timetable places the drilling programme only weeks ahead of the targeted December start of oil production.

South Lokichar project targets 20,000 barrels per day

The South Lokichar Basin development is estimated at about KSh774 billion ($6 billion), making it one of the largest energy investments planned in East Africa.

During its first phase, the project is expected to target production of approximately 20,000 barrels of oil per day. Plans call for output to potentially rise to 50,000 barrels per day during a second phase.

The development is being supported by several international oilfield-services companies. Gulf Energy has contracted Baker Hughes to provide Integrated Well Services, while SLB has been engaged to develop the Early Production Facility.

The GW70 rig previously worked on projects for the Abu Dhabi National Oil Company, with Gulf Energy highlighting its operational and safety record.

What oil production could mean for Kenya

The development of the South Lokichar fields is expected to generate significant government and industry revenues over the life of the project.

Kenyan government projections put potential lifetime revenues from the fields at approximately KSh371 billion ($2.9 billion). The eventual figure, however, will depend on factors including international oil prices, production levels and the duration of field operations.

For Kenya, the arrival of the drilling rig represents a significant logistical milestone after years of planning, delays and changes to the country’s upstream petroleum development programme.

The next major milestones will be the transportation and commissioning of the GW70 rig, the planned November drilling start and the progress of the project toward the December 2026 first-oil target.

Other News: Kenyan Shilling Holds Firm Against EAC Currencies as Forex Reserves Fall by KSh6 Billion