Kenya Closer To Oil Production As Gulf Energy Secures Ksh1.9B Drilling Machine
Kenya’s efforts to drill its first oil reserves in Turkana’s South Lokichar Basin project have received a significant boost after the country bought an onshore drilling machine worth Ksh1.9 billion from the United Arab Emirates (UAE).
The deal was announced by Gulf Energy E&P BV, a local oil exploration firm that has leased the GW70 rig from the United Arab Emirates’ Great Wall Drilling Company on a long-term basis.
The government intends to deliver the first oil from the South Lokichar Basin by the end of the year, and the acquisition of the 1,500-horsepower rig has provided a significant boost.
The machine is expected to arrive in the country around June and will undergo procedural commissioning and acceptance checks before drilling begins in early July.
Simultaneously, a high-level delegation from Kenya, consisting of technical officials from the State Department for Petroleum, the Energy and Petroleum Regulatory Authority (EPRA), and the Turkana County Government, visited Abu Dhabi to assess the rig.
Gulf Energy E&P BV has secured a US$15 million (Sh1.9B) onshore drilling rig from Great Wall Drilling Company in Abu Dhabi, positioning itself to begin drilling in the South Lokichar Basin by July and targets first oil by December. pic.twitter.com/vQuVhHJwUp
— Pesa Wall (@PesaWall) February 20, 2026
The GW70 rig has completed projects for the Abu Dhabi National Oil Company (ADNOC) and has an excellent operating track record, combining efficiency and safety.
The South Lokichar Basin development costs Ksh774.1 billion (USD6 billion), with Gulf Energy spending in infrastructure, machinery, and human capital to prepare for commercial oil production.
According to records from the Treasury, the government intends to earn between Ksh135.3 billion (USD1.05 billion) and Ksh374.4 billion (USD2.9 billion) during the exploration, figures that are, however, subject to global oil prices.
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Kenya intends to share the revenue proceeds from the oil project in line with the Petroleum Act, with the money set to go to the local community, Turkana County and the national government.
According to initial estimates from Tullow Oil and its former joint venture partners, the South Lokichar Basin holds about 560 million barrels of recoverable oil.
However, the oil initially in place (OIP) across the basin could be as high as 4 billion barrels, though only a portion is extractable under current economic and technical conditions.
The South Lokichar Basin region has been the focus of intense exploration since the first major discovery was made by Tullow Oil in 2012 at the Ngamia-1 well.
Kenya Closer To Oil Production As Gulf Energy Secures Ksh1.9B Drilling Machine
