Gulf Energy E&P BV has taken a decisive step toward unlocking Kenya’s long-delayed oil ambitions, acquiring a $15 million onshore drilling rig for the Lokichar project with a firm target of achieving first oil by December 1 this year.
The GW70 onshore oil rig, procured 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 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 include skills transfer to local personnel.
A technical delegation from the Kenyan government and Turkana County Government recently completed a site inspection of the rig in Abu Dhabi’s Al Dhafra region. Even as the company awaits parliamentary ratification of its Field Development Plan, Njogu said Gulf Energy is pressing ahead with strategic investments as part of the planned $6 billion project rollout.
Government projections estimate the South Lokichar Basin development could generate between $1.05 billion and $2.9 billion in earnings over the project’s lifespan, depending on oil prices.
Source: capitalfm.co.ke