The drilling rig for the South Lokichar oil development has arrived in Mombasa ahead of its transfer to Turkana.
The rig will be moved to Turkana for commissioning as Gulf Energy prepares to begin drilling on November 1 and targets first oil in December 2026.
Kenya’s South Lokichar oil development has moved closer to drilling after Gulf Energy E&P BV SEZ received an onshore rig at the Port of Mombasa, ahead of the country’s target to begin commercial crude production in December 2026.
The company said the equipment arrived at Kilindini Port on Friday aboard the MV Transit Sedanka, following a voyage from Duqm Port in Oman. It is destined for the South Lokichar development in Turkana County, where the first well is scheduled for November 1, 2026.
Rig heads to Turkana for commissioning
Gulf Energy Chief Executive Officer Paul Limoh said the Kenya Ports Authority was offloading the equipment before its transportation by road to Turkana. He said project activities were following a tight schedule, with the company maintaining its December 2026 first-oil target.
The GW70 rig has a capacity of 1,500 horsepower and has been secured through a long-term lease from Great Wall Drilling Company. Gulf Energy puts the equipment’s value at more than $20 million.
Before drilling can start, the rig will undergo commissioning and acceptance checks. Its arrival therefore sets up the next sequence of work: inland transportation, installation checks and preparations for the planned November start.
Production planned in two phases
Gulf Energy is targeting initial output of 20,000 barrels of crude oil a day during the first phase of the South Lokichar development. A second phase is intended to raise production to 50,000 barrels a day.
The company has contracted Baker Hughes to supply integrated well services, while SLB will deliver the Early Production Facility. These contracts form part of preparations to bring the fields into production under an investment programme estimated at $6 billion.
The development follows years of delays since oil was discovered in the South Lokichar Basin. Work is now progressing under Gulf Energy, with drilling and production milestones set for the final months of 2026.
Crude exports expected in early 2027
While Kenya is targeting first oil in December 2026, the Energy and Petroleum Regulatory Authority has said the first crude exports from Mombasa are expected in the first quarter of 2027. That export timetable is aligned with the approved Field Development Plan.
Government projections cited in the project plans indicate that Kenya could earn more than $2.9 billion, approximately Sh371 billion, over the project’s lifetime. Those potential receipts depend on international crude prices and the volumes ultimately produced.
The initial development phase is also expected to generate activity in drilling, transport, oilfield services and related support sectors. The immediate focus remains on getting the rig to Turkana and completing the checks required before drilling, as Kenya prepares for the planned transition from oil exploration to commercial crude production.
