Gulf Energy chairman Francis Njogu during a past meeting with law makers/Photo.Courtesy
Local oil exploration and production firm Gulf Energy E&P BV has secured and contracted an onshore oil rig in the Middle East, reinforcing its commitment to deliver first oil from the South Lokichar Basin before the end of the year.
In a strategic and capital-intensive move, the company confirmed it had secured the GW70 rig, valued at more than Sh1.9billion, from Great Wall Drilling Company (GWDC) in the United Arab Emirates (UAE) on a long-term lease arrangement. Logistical preparations are now underway to ship the rig from Abu Dhabi to Mombasa before the end of next month.
Gulf Energy Chairman Francis Njogu said the firm has reached a contractual agreement with GWDC to deliver, commission and operate the rig in the South Lokichar Basin under a performance-based model that will also involve active skills transfer.
“At Gulf Energy, it’s all systems go, in the journey to deliver first oil by December 1st this year. The delegation in Abu Dhabi has witnessed firsthand the advanced state of GW70, an integrated onshore oil field drilling rig which we recently secured,” Njogu said.
He noted that securing a modern onshore drilling rig marks a significant investment for the company, coming at a time when global demand for such equipment remains high and mobilisation timelines are increasingly stretched.
Despite these pressures, Gulf Energy says it expects to secure the required legislative and regulatory approvals and has already allocated the necessary capital for the rig.
The announcement follows a high-level technical visit to Abu Dhabi by officials from Kenya and Turkana County to inspect the rig ahead of deployment.
In a communique from the UAE, Turkana County Government officials led by County Secretary Dr Amb. Richard Ekai and Director for Climate Change George Emase said the visit was undertaken following a formal delegation by Governor Dr Jeremiah Ekamais Lomorukai and was intended to ensure that the rig meets the highest industry standards before operations commence.
The delegation described the engagement as both enlightening and productive, noting that it provided valuable insight into the rig’s capabilities and operational preparedness. Beyond the mechanics and machinery, the team also focused on GWDC’s corporate and environmental credentials, including skills transfer commitments.
“This inspection forms a crucial part of the quality assurance, performance evaluation and safety verification process ahead of its deployment to the South Lokichar Basin in Turkana County. During the inspection, the team carried out a detailed technical evaluation of the rig’s operational systems and safety mechanisms. Recommendations were issued to fine-tune readiness and guarantee seamless performance once the rig is mobilised to Turkana,” the communique said.
The GW70 Onshore rig, with a 1500 horsepower capacity, is expected in Kenya around June, ahead of procedural rig commissioning and acceptance checks to be ready for the start of drilling works (spud) in early July.
In Abu Dhabi, the rig has undertaken projects for the Abu Dhabi National Oil Company (ADNOC) and has posted what the company described as an excellent, efficient and safe operating record.
Even as Gulf Energy awaits parliamentary ratification of its Field Development Plan (FDP), the firm has already commenced strategic investments, including rig sourcing, ahead of the Sh773.9billion project kick-off.
Kenya stands to gain significant fiscal and economic benefits from the South Lokichar Basin oil fields development, with the Government projecting potential earnings of between Sh193.4billion (at Sh7739per barrel) and Sh374 billion (at 9029 per barrel).
