Kenya’s long-anticipated entry into commercial oil production is gathering tangible momentum after Gulf Energy E&P BV secured a high-specification onshore drilling rig from the Middle East, reinforcing its operational preparedness ahead of the South Lokichar Basin development phase.
The company has entered into a long-term lease agreement with Great Wall Drilling Company for the GW70 rig, a 1,500-horsepower unit valued at over US$15 million.
The move represents one of the most significant early capital commitments toward the estimated US$6 billion field development project, underscoring Gulf Energy’s intent to accelerate timelines despite pending parliamentary ratification of its Field Development Plan (FDP).
By locking in the rig ahead of final legislative clearance, the company is mitigating potential supply chain risks at a time when global demand for advanced drilling equipment remains high and mobilisation lead times continue to lengthen.
Industry analysts view this proactive procurement strategy as a signal of investor confidence and long-term commitment to Kenya’s upstream oil sector.
Chairman Francis Njogu said the contractual framework with Great Wall Drilling Company goes beyond equipment leasing.
The agreement adopts a performance-based operational model that ties delivery and efficiency metrics to execution benchmarks, while embedding structured skills transfer to Kenyan engineers and technicians.
This capacity-building component is expected to play a critical role in strengthening local expertise within Turkana County and the broader petroleum industry.
Before authorising shipment of the rig to Kenya, a multi-agency Kenyan delegation travelled to Abu Dhabi’s Al Dhafra region to conduct a detailed technical inspection and familiarisation exercise.
The delegation brought together officials from the national government, the Turkana County Government, petroleum experts from the Ministry of Energy, and regulators from the Energy and Petroleum Regulatory Authority (EPRA) — highlighting the coordinated oversight framework guiding the project.
During the inspection, the team carried out rigorous evaluations of the rig’s mechanical systems, safety infrastructure, blowout prevention mechanisms, automation capabilities and environmental compliance standards.
The GW70 unit has previously operated on projects under the Abu Dhabi National Oil Company (ADNOC), where it established a record of operational efficiency and adherence to international safety benchmarks.
Kenyan officials cited this track record as a key factor in their confidence ahead of deployment.
Turkana County Secretary Dr. Amb. Richard Ekai, part of the inspection mission initiated under the guidance of Governor Jeremiah Ekamais Lomorukai, emphasised that beyond technical readiness, the delegation assessed environmental safeguards, local employment commitments, and corporate governance standards.
Particular attention was given to ensuring compliance with Kenya’s environmental laws and community benefit-sharing frameworks, given Turkana’s sensitivity as both a host community and a historically marginalised region.
Logistical planning for the rig’s mobilisation is already underway, with shipment from Abu Dhabi to Mombasa expected before the end of next month.
Upon arrival, the equipment will undergo commissioning, calibration, and regulatory acceptance checks prior to spudding operations targeted for early July.
These preparatory stages are crucial in validating system integrity, safety controls, and operational synchronisation before drilling begins.
Gulf Energy has maintained that it remains on track to achieve first oil by December 1, provided regulatory and parliamentary processes proceed as anticipated.
The company has already allocated the necessary capital expenditure for rig mobilisation and initial drilling operations, reducing uncertainty around funding during the early execution phase.
The economic stakes are considerable. Government projections indicate that the South Lokichar Basin development could generate between US$1.05 billion and US$2.9 billion over the project’s lifespan, depending on global crude prices.
At current exchange rates, this translates to approximately KES 136 billion to KES 371 billion in potential revenue.
Beyond direct fiscal returns, the project is expected to stimulate infrastructure expansion, local enterprise growth, employment creation, and ancillary service industries in Turkana and across Kenya.
If timelines hold, the mobilisation of the GW70 rig will mark the operational turning point from exploration to production — a transition that could redefine Kenya’s energy landscape, diversify national revenue streams, and anchor Turkana as a strategic hub in the country’s extractive sector.
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