Kenya’s effort to drill its first oil deposits in the South Lokichar Basin project in Turkana has received significant momentum following the country’s acquisition of an onshore drilling machine valued at Ksh1.9 billion from the United Arab Emirates (UAE).
The local oil exploration firm, Gulf Energy E&P BV, announced the deal, confirming their contract with the UAE’s Great Wall Drilling Company for the GW70 rig under a long-term lease agreement.
The government aims to deliver its first oil from the South Lokichar Basin by year-end and has now secured substantial support with the rig acquisition, which features a 1,500-horsepower capacity.
The drilling equipment is scheduled to arrive in Kenya before June and will undergo procedural commissioning and acceptance checks before commencing operations in early July.
A high-level delegation from Kenya, including technical representatives from the State Department for Petroleum, the Energy and Petroleum Regulatory Authority (EPRA), and the Turkana County Government, is also involved in the initiative.
The GW70 rig has previously worked on projects for the Abu Dhabi National Oil Company (ADNOC) and has demonstrated a proven operational record, balancing efficiency with safety standards.
The South Lokichar Basin development represents a Ksh774.1 billion (USD6 billion) initiative, with Gulf Energy investing in infrastructure, equipment, and workforce development to facilitate commercial oil production.
Treasury records indicate that exploration figures are subject to fluctuations in global oil prices.
Revenue from the oil project will be distributed according to the Petroleum Act, with allocations designated for the local community, Turkana County, and the national government.
Initial assessments by Tullow Oil and its previous joint venture partners estimate the South Lokichar Basin contains approximately 560 million barrels of recoverable oil.
However, the total oil initially in place (OIP) throughout the basin may reach up to 4 billion barrels, though only a fraction can be extracted with current economic and technological capabilities.
The South Lokichar Basin region has been the center of extensive exploration activities since Tullow Oil’s significant discovery at the Ngamia-1 well in 2012.