Kenya: Mombasa Welcomes Rig for First Commercial Oil Drilling

• A 1,500 horsepower GW70 drilling rig, leased by Gulf Energy E&P BV, arrived at Kilindini Port in Mombasa on Friday from Oman.
• The rig is destined for the South Lokichar Basin in Turkana County, with drilling scheduled to begin on November 1 after commissioning.
• Gulf Energy CEO Paul Limoh confirmed the project is on track for "First Oil" production in December 2026, a target also stated by EPRA.
• The first phase of the project aims for 20,000 barrels of crude oil per day, potentially rising to 50,000 barrels daily in the second phase.
• First crude exports through the Port of Mombasa are anticipated in the first quarter of 2027, over a decade after oil was discovered in Turkana in 2012.

Kenya has taken a significant step towards initiating commercial oil production with the recent arrival of a powerful drilling rig at the Port of Mombasa.

Kenya has taken a significant step towards initiating commercial oil production with the recent arrival of a powerful drilling rig at the Port of Mombasa. The GW70 rig, boasting 1,500 horsepower, docked at Kilindini Port on Friday, having completed its journey from Duqm Port in Oman aboard the MV Transit Sedanka. This event marks a crucial milestone for the nation's energy ambitions, directly supporting Kenya's first commercial oil drilling efforts.

Leased by Gulf Energy E&P BV from Great Wall Drilling Company, the GW70 rig is now poised for transport to its ultimate destination: the South Lokichar Basin in Turkana County. Before drilling commences, the equipment will undergo essential commissioning and acceptance checks. Operations are slated to begin on November 1, signaling the immediate progression of this long-anticipated project.

The arrival of the GW70 rig is integral to the broader commercial development of the South Lokichar Basin, a region where oil was initially discovered more than a decade ago in 2012. According to Paul Limoh, Chief Executive Officer of Gulf Energy, all operational streams within Gulf Energy E&P BV SEZ are adhering to a stringent project management schedule, keeping the initiative firmly on track for its "First Oil" production target in December 2026.

The Energy and Petroleum Regulatory Authority (EPRA) corroborates this timeline, confirming Kenya's aim for first oil in December 2026. Projections indicate that the initial phase of the project will yield approximately 20,000 barrels of crude oil per day, with a substantial increase to 50,000 barrels daily anticipated during the second phase. Furthermore, the first crude oil exports through the Port of Mombasa are projected to commence in the first quarter of 2027, highlighting the strategic importance of the port for EPRA Kenya crude oil exports.

The ambitious South Lokichar Basin oil production project relies on a network of strategic partnerships and specialized contracts to ensure its successful execution. Beyond the leasing agreement with Great Wall Drilling Company for the GW70 rig, Gulf Energy has engaged other industry leaders to provide critical services.

Baker Hughes has been contracted to deliver integrated well services, a vital component for efficient drilling and extraction. Additionally, SLB has been brought on board to supply an early production facility specifically for the project's first phase. These collaborations underscore the complex logistical and technical requirements involved in advancing Kenya's energy sector development towards commercial viability.

Lawyers and compliance officers in the energy and natural resources sector should closely monitor the evolving regulatory landscape and contractual frameworks as Kenya transitions to commercial oil production, particularly concerning environmental impact assessments, local content requirements, and export logistics through Mombasa.

Source: Original reporting via The Standard