Kenya’s South Lokichar oil project has reached a key stage after an onshore drilling rig arrived at the Port of Mombasa ahead of its planned deployment to Turkana County.
The drilling rig was transported aboard MV Transit Sedanka from Duqm Port in Oman and docked at Kilindini Port on Friday, September 25.
The equipment is expected to be moved by road to the South Lokichar Basin, where drilling activities are scheduled to begin in November.
In a statement issued on Friday, September 25, Local oil exploration and production firm Gulf Energy E&P BV SEZ, the company developing the project, said the rig was being offloaded at the port by the Kenya Ports Authority before being transported to Turkana.
“Kenya’s plan to deliver its first crude oil before the end of the year has reached another milestone with the arrival of the drilling rig at the Port of Mombasa today,” read the statement in parts.
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South Lokichar Oil Project Hits Major Milestone as Drilling Rig Arrives in Mombasa
The company has set November 1 as the planned spud date, marking the start of the first phase of development in the South Lokichar Basin.
Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh said the project remained on schedule.
“All workstreams at Gulf Energy E&P BV SEZ are running to a tight project management schedule, and the project remains on course for First Oil production in December 2026,” Limoh said.
The GW70 rig has a capacity of 1,500 horsepower and is valued at more than $20 million.
It has been leased from Great Wall Drilling Company under a long-term arrangement.
Before drilling starts, the rig will undergo commissioning and acceptance checks after arriving at the project site.
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Kenya Targets 20,000 Barrels Per Day in Initial South Lokichar Oil Production
The first phase of the South Lokichar development is expected to produce 20,000 barrels of crude oil per day before production is increased to a targeted 50,000 barrels per day during the second phase.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said in May that Kenya expects to begin commercial oil production by the end of 2026.
Addressing the Senate plenary, Wandayi said production from the South Lokichar fields in Turkana County would increase progressively, noting that the initial output would not be enough to support a commercial refinery.
“From the beginning we shall be producing about 20,000 barrels per day, which will progress to some 50,000 barrels per day,” he said.
“Petroleum economics tell us that we need some 300,000 to 500,000 barrels per day to run a refinery viably.”
Gulf Energy has contracted Baker Hughes to provide integrated well services for the first phase, while SLB has been contracted to provide an Early Production Facility.
The South Lokichar Basin development is one of Kenya’s largest planned petroleum projects and is expected to have significant implications for the country’s energy and revenue outlook.
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