NAIROBI — With the clock ticking and a self-imposed December 1 deadline looming, Gulf Energy E&P BV has made a decisive move in its quest to pump Kenya’s first commercially developed oil from the South Lokichar Basin — acquiring a heavyweight onshore drilling rig valued at over Sh2 billion ($15 million) and shipping it halfway around the world from the United Arab Emirates.
The GW70 onshore oil rig, secured from Great Wall Drilling Company (GWDC) in the UAE under a long-term lease arrangement, is expected to arrive in Kenya before the end of next month. Gulf Energy Chairman Francis Njogu confirmed the company has entered 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.
A high-level technical delegation from the Government of Kenya and the Turkana County Government recently concluded an inspection tour of the GW70 rig in the Al Dhafra region of Abu Dhabi. “At Gulf Energy, it’s all systems go in the journey to deliver first oil by December 1 this year,” Njogu declared.
The move is all the more striking given that Gulf Energy is still awaiting parliamentary ratification of its Field Development Plan (FDP) — yet the company says it has already begun ploughing capital into the planned $6 billion project rollout. If the venture succeeds, Kenya’s government projects potential earnings of between $1.05 billion (at $60 per barrel) and $2.9 billion (at $70 per barrel) over the project’s lifespan — a transformative windfall for one of East Africa’s largest economies.
Source: allafrica.com