Gulf Energy Secures US$15mn Onshore Oil Rig in Abu Dhabi Ahead of South Lokichar Project.

Gulf Energy E&P BV has secured a US$15 million onshore oil rig in the United Arab Emirates, marking a major step towards delivering first oil from the South Lokichar Basin before the end of the year.
The GW70 rig, leased long-term from Great Wall Drilling Company (GWDC), will be shipped from Abu Dhabi to Mombasa by the end of next month, ahead of rig commissioning and drilling operations (spud) expected to begin in early July.

The 1,500-horsepower rig has previously been deployed on projects for the Abu Dhabi National Oil Company (ADNOC) and has an excellent operational and safety record.

Gulf Energy Chairman Francis Njogu said the company had secured the rig under a performance-based contract, which includes operational oversight and skills transfer to local personnel.

“At Gulf Energy, it’s all systems go in the journey to deliver first oil by December 1st this year. The delegation in Abu Dhabi witnessed firsthand the advanced state of GW70, an integrated onshore oil field drilling rig which we recently secured,” Njogu said.

A high-level technical delegation from the Government of Kenya, including officials from the State Department for Petroleum, the Energy and Petroleum Regulatory Authority (EPRA), and the Turkana County Government, conducted an inspection of the rig in Abu Dhabi’s Al Dhafra region.

The visit focused on operational preparedness, safety verification, and environmental compliance, as well as corporate skills transfer commitments.

“This inspection forms a crucial part of quality assurance, performance evaluation, and safety verification ahead of deployment to the South Lokichar Basin. The team carried out a detailed technical evaluation and issued recommendations to fine-tune readiness and guarantee seamless performance,” said a communique from the delegation.

Even as Gulf Energy awaits parliamentary ratification of its Field Development Plan (FDP), strategic investments such as rig sourcing demonstrate the firm’s commitment to the US$6 billion South Lokichar Project.

The development of the South Lokichar Basin oil fields is expected to bring significant fiscal and economic benefits to Kenya. Government projections estimate potential earnings ranging from USD 1.05 billion (at USD 60 per barrel) to USD 2.9 billion (at USD 70 per barrel), equivalent to KES 136 billion to KES 371 billion over the life of the project.