Gulf Energy's Drilling Rig Arrives in Mombasa as Kenya Eyes First Oil Production

The long-awaited moment in Kenya's oil production journey has finally arrived as Gulf Energy's drilling rig, valued at over $20 million, has docked at the Port of Mombasa. The GW70 rig, leased from Great Wall Drilling Company, will be used for the South Lokichar project, which is expected to produce 20,000 barrels per day in its first phase. According to Gulf Energy's CEO Paul Limoh, drilling on the first phase will start on November 1st, with the goal of reaching first oil production by December 2026.

The rig's arrival marks a significant step towards Kenya's journey to becoming an oil-producing nation. The South Lokichar Basin is projected to generate lifetime earnings exceeding $2.9 billion over the life of the project. Gulf Energy has contracted Baker Hughes and SLB to handle Integrated Well Services and build the Early Production Facility, respectively.

The Government of Kenya is closely watching this development as it could position Kenya as a notable oil producer in East Africa. With the rig now on Kenyan soil, the countdown to December 2026 has moved from plan to schedule. The next milestone: first oil out of the ground.