Gulf Energy E&P BV, the local oil exploration and production company, has secured and contracted an onshore oil rig in the Middle East and is expected to deliver first oil from the South Lokichar Basin before the end of the year. The GW70 rig, valued at more than US$15 million, has been secured from Great Wall Drilling Company (GWDC) in the United Arab Emirates (UAE) on a long-term lease arrangement.
Gulf Energy Chairman, Mr Francis Njogu, said the firm has reached a contractual arrangement with GWDC to deliver, commission and operate the rig in the South Lokichar Basin under a performance-based model that will also involve active skills transfer. A high-level technical delegation from the Government of Kenya and the Turkana County Government has finalised an inspection tour of the onshore drilling rig in the Al Dhafra region of Abu Dhabi.
Even as Gulf Energy awaits the parliamentary ratification of its Field Development Plan (FDP), he said it has commenced strategic investments, including rig sourcing, ahead of the US$6 billion project kick-off.
The GW70 Onshore rig with a 1,500 horsepower capacity is expected in Kenya in June start drilling works (spud) in early July. In Abu Dhabi, the rig has been undertaking projects for the Abu Dhabi National Oil Company (ADNOC) and has clocked what he described as an excellent, efficient, and safe operating record.
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Alongside Gulf Energy Executives, the delegation in Abu Dhabi included technical officials from the State Department for Petroleum at the Ministry of Energy and Petroleum, the Energy and Petroleum Regulatory Authority (EPRA), and the Turkana County Government. “It’s all systems go, in the journey to deliver first oil by December this year. The delegation in Abu Dhabi has witnessed firsthand the advanced state of GW70, an integrated onshore oil field drilling rig which we recently secured,” Njogu said.
He noted that securing a modern onshore drilling rig marks a significant investment for the company. Gulf Energy says it expects to secure the required legislative and regulatory approvals and has already allocated the necessary capital for the rig.
In a communique from the UAE, Turkana County Government officials led by County Secretary Dr Amb. Richard Ekai and Director for Climate Change George Emase said the visit was undertaken following a formal delegation by Governor Dr Jeremiah Ekamais Lomorukai and was intended to ensure that the rig meets the highest industry standards before operations commence.
Kenya stands to gain significant fiscal and economic benefits from the South Lokichar Basin oil fields development, with the Government of Kenya projecting potential earnings between USD 1.05 billion (at USD 60 per barrel) and USD 2.9 billion (at USD 70 per barrel), which translates to Ksh 136 billion to Ksh 371 billion over the life of the project.
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