Drilling Rig Arrives in Mombasa as Kenya Nears First Commercial Oil Production
The project is expected to produce about 20,000 barrels of crude oil per day during its first phase, running from 2026 to 2032.
The GW70 onshore drilling rig at Kilindini Port in Mombasa after arriving from Oman. Photo: Mjengohub.
By Robert Mutasi
Kenya has moved closer to its long-awaited entry into commercial oil production following the arrival of a drilling rig at the Port of Mombasa for the South Lokichar oil project in Turkana County.
Gulf Energy E&P BV SEZ, the company overseeing commercial production, confirmed that the rig had arrived in Kenya ahead of its planned transportation to the oil fields in South Lokichar.
The company plans to begin drilling at Blocks T6 and T7 on November 1, 2026, as it works towards its target of producing Kenya’s first commercial crude oil by December.
The GW70 drilling rig, valued at more than $20 million (about Sh2.59 billion), has been leased on a long-term basis from Great Wall Drilling Company of the United Arab Emirates.
Gulf Energy acquired the South Lokichar oil project from Tullow Kenya BV in a deal worth $120 million (about Sh15.56 billion). The acquisition followed years of delays as the project struggled to secure investment and regulatory approvals.
Gulf Energy chief executive Paul Limoh said the company’s work was proceeding according to schedule and remained focused on achieving first oil production before the end of the year.
The project is expected to produce about 20,000 barrels of crude oil per day during its first phase, running from 2026 to 2032. Production is planned to rise to 50,000 barrels per day from 2033 under the second phase.
Commercial production would mark the culmination of more than a decade of efforts to develop Kenya’s oil resources. Tullow discovered commercially viable oil in South Lokichar in 2012, but the project was subsequently delayed by difficulties in securing a strategic partner and approval of its field development plan.
Tullow eventually sold the project to Gulf Energy in September 2025. The transaction was structured in three instalments of $40 million each, with the final payment due by June 10, 2033.
The project received approval for its field development plan earlier in 2026, paving the way for Gulf Energy to accelerate preparations for production.
If the December target is achieved, Kenya would join Uganda and South Sudan as an East African country producing crude oil for commercial export. South Sudan began commercial production in 2021, while Uganda is also preparing to commence production from its oil fields in the Albertine region.
Kenya’s planned start of commercial production is therefore expected to mark a significant milestone for the country’s energy sector and its ambitions to become a crude oil exporter.
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