Gulf Energy E&P BV Secures US$15M Rig to Fast-Track South Lokichar Oil Project

Local oil exploration and production company Gulf Energy E&P BV has acquired and contracted an onshore drilling rig from the Middle East, reinforcing its pledge to achieve first oil production from the South Lokichar Basin before year-end. In what the company describes as a major strategic investment, Gulf Energy secured the GW70 onshore rig — valued at over US$15 million — from Great Wall Drilling Company in the United Arab Emirates under a long-term lease agreement. Preparations are underway to transport the rig from Abu Dhabi to Mombasa by the end of next month. Gulf Energy Chairman Francis Njogu said the agreement covers delivery, commissioning and full operation of the rig in the South Lokichar Basin through a performance-based framework that will also incorporate skills transfer initiatives. He revealed that a senior technical delegation from the Government of Kenya and the Turkana County Government recently completed an inspection and familiarisation tour of the rig in the Al Dhafra region of Abu Dhabi. Even as the company awaits parliamentary approval of its Field Development Plan (FDP), Njogu said Gulf Energy has already begun key preparatory investments — including securing drilling equipment — ahead of the anticipated US$6 billion project launch. The 1,500-horsepower GW70 rig is expected to arrive in Kenya around June. It will then undergo commissioning and acceptance procedures in readiness for drilling operations scheduled to begin in early July. Njogu noted that the rig has previously handled projects for the Abu Dhabi National Oil Company (ADNOC), where it maintained a strong safety and performance record. The Abu Dhabi delegation included officials from the State Department for Petroleum under the Ministry of Energy and Petroleum, the Energy and Petroleum Regulatory Authority (EPRA), and representatives from Turkana County. Njogu said the company remains firmly on course to deliver first oil by December 1, adding that securing a modern drilling rig represents a substantial commitment, particularly amid high global demand for such equipment and extended mobilisation timelines. He expressed confidence that all required legislative and regulatory approvals will be secured, noting that funding for the rig has already been set aside. In a communiqué issued from the UAE, Turkana County officials led by County Secretary Dr. Amb. Richard Ekai and Climate Change Director George Emase said the inspection followed a formal directive from Governor Jeremiah Ekamais Lomorukai to verify that the rig meets international industry standards ahead of deployment. The delegation termed the visit productive and informative, highlighting the rig’s operational readiness as well as GWDC’s corporate governance and environmental compliance record, including commitments to local capacity building. According to the communiqué, the inspection formed part of a broader quality assurance and safety validation process prior to the rig’s relocation to Turkana. The team conducted a comprehensive review of operational systems and safety mechanisms and issued recommendations to enhance readiness for seamless performance upon mobilisation. The South Lokichar Basin oil development is projected to deliver significant economic returns to Kenya, with government estimates placing potential earnings between US$1.05 billion (at US$60 per barrel) and US$2.9 billion (at US$70 per barrel) — equivalent to approximately KES 136 billion to KES 371 billion over the project’s lifespan.