Gulf Energy Secures US$15M Rig to Fast-Track South Lokichar Oil Project

In a move that underscores rising investor confidence in Kenya’s extractive sector, Gulf Energy E&P BV has secured a US$15 million onshore drilling rig from the United Arab Emirates, signalling that preparations for the South Lokichar Basin oil project are entering a decisive execution phase.

The company signed a long-term lease agreement with Great Wall Drilling Company for the GW70 rig — a 1,500-horsepower unit currently stationed in Abu Dhabi. Logistics are now being finalised to transport the equipment to Mombasa ahead of drilling scheduled to begin in early July.

Chairman Francis Njogu said the acquisition reflects a proactive investment strategy, with the firm moving ahead of final parliamentary approval of its Field Development Plan. He noted that the performance-based contract will not only guarantee operational efficiency but also embed structured skills transfer to Kenyan engineers and technicians.

The rig has previously been deployed in projects undertaken by the Abu Dhabi National Oil Company (ADNOC), building a track record for safety and operational excellence — credentials Gulf Energy believes will support smooth commissioning in Turkana.

A joint delegation comprising national government officials, regulators from the Energy and Petroleum Regulatory Authority (EPRA), and representatives of the Turkana County Government recently inspected the rig in the Al Dhafra region. The mission focused on technical readiness, environmental compliance and adherence to global safety standards.

Turkana County Secretary Dr. Amb. Richard Ekai, who led the county delegation under the direction of Governor Jeremiah Ekamais Lomorukai, said the visit formed part of a broader oversight process to safeguard local interests and ensure world-class operational benchmarks.

With global demand for drilling equipment remaining high and mobilisation timelines tightening, the early acquisition positions Gulf Energy strategically within a competitive market. The company has already committed capital resources toward deployment, signalling confidence that regulatory approvals will follow.

If the project timeline holds, first oil is targeted for December 1 — a milestone that could unlock between US$1.05 billion and US$2.9 billion in projected revenues over the life of the South Lokichar development, offering significant fiscal returns for Kenya and transformative economic prospects for Turkana County.