Kenya’s first oil moves closer as drilling rig arrives at Mombasa port

The Mt Kenya Times

Business
26 September 2026

The Mt Kenya Times

Gulf Energy E&P BV SEZ confirms the GW70 rig has docked at Kilindini ahead of its transfer to Turkana County, with a November spud date targeted.

By Brian Gitonga

Kenya’s ambition to produce its first crude oil before the end of the year took a concrete step forward yesterday after a drilling rig arrived at the Port of Mombasa, setting the stage for operations to begin in the South Lokichar Basin.

Local oil exploration and production firm Gulf Energy E&P BV SEZ confirmed that a cargo ship carrying the integrated onshore drilling rig docked at Kilindini Port after sailing from Duqm Port in Oman. The GW70 rig — valued at more than $20 million and leased from Great Wall Drilling Company in the United Arab Emirates on a long-term arrangement — arrived aboard MV Transit Sedanka.

The Kenya Ports Authority began offloading the rig equipment, with the firm scheduling road transfer to Turkana County in preparation for a spud date of November 1 — the point at which drilling officially begins — to kick off the first phase of what is projected as a $6B crude oil development.

Gulf Energy E&P BV SEZ Chief Executive Paul Limoh said operations were proceeding on schedule. “All workstreams at Gulf Energy E&P BV SEZ are running to a tight project management schedule, and the project remains on course for first oil production in December 2026,” Limoh said, adding that KPA officials had provided professional support during the offloading process.

*The vessel after docking. Photos/Courtesy.*

In the first phase of the South Lokichar development, Gulf Energy E&P BV SEZ plans to produce 20,000 barrels per day, before scaling up to 50,000 barrels per day in the second phase — a trajectory that would position Kenya as a significant oil producer in East Africa.

To deliver on those targets, the firm has contracted Baker Hughes, a leading global oilfield services and equipment provider, to handle integrated well services. SLB, an energy technology and services company, has been engaged to deliver the Early Production Facility.

The 1,500-horsepower GW70 rig will undergo commissioning and acceptance checks before drilling begins. In the UAE, the rig has an established record working on projects for the Abu Dhabi National Oil Company, with a strong safety and efficiency profile.

The broader economic stakes are considerable. The government projects potential lifetime earnings from the South Lokichar Basin of more than $2.9B — equivalent to KSh371B — depending on global oil prices and production volumes over the life of the project.

For a country that has waited years to convert its oil discoveries into tangible revenue, the arrival of the rig at Kilindini is more than a logistical milestone. It is the clearest signal yet that Kenya’s first oil is no longer a distant prospect.