Nairobi — Gulf Energy E&P BV has acquired an onshore oil drilling rig valued at over Sh2 billion ($15 million) for the Lokichar oil project, as it targets first oil production before the end of this year.
The GW70 onshore oil rig was secured from Great Wall Drilling Company (GWDC) in the United Arab Emirates under a long-term lease arrangement and is expected to arrive in Kenya before the end of next month.
Gulf Energy Chairman Francis Njogu said the company has entered into 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 incorporate skills transfer to local personnel.
He revealed that a high-level technical delegation from the Government of Kenya and the Turkana County Government recently concluded a familiarisation and inspection tour of the rig in the Al Dhafra region of Abu Dhabi.
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Even as the firm awaits parliamentary ratification of its Field Development Plan (FDP), Njogu said Gulf Energy has already begun strategic investments, including sourcing the rig, ahead of the planned $6 billion project rollout.
"At Gulf Energy, it's all systems go in the journey to deliver first oil by December 1 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.
Kenya is expected to derive substantial fiscal and economic benefits from the South Lokichar Basin oil fields development, with government projections estimating potential earnings of between $1.05 billion (at $60 per barrel) and $2.9 billion (at $70 per barrel) over the project's lifespan.
