Kenya's Sh2.6 billion drilling rig arrives in Mombasa, Turkana oil drilling set for November

Kenya's push to commence commercial crude oil production by the end of 2026 has gained momentum.

The push follows the arrival of a key onshore drilling rig for the South Lokichar oil development.

The rig docked at Kilindini Port in Mombasa, marking a concrete step forward in the country's long-anticipated entry into oil production.

Gulf Energy E&P BV SEZ, the upstream petroleum company formerly known as Tullow Kenya BV, confirmed that the GW70 onshore drilling rig arrived on Friday, September 25, 2026, aboard the cargo vessel MV Transit Sedanka.

The rig sailed all the way from Duqm Port in Oman.

The arrival marks a major milestone in preparing for drilling operations in Turkana County, where Kenya firmly roots its oil ambitions.

Great Wall Drilling Company in the United Arab Emirates leased the 1,500-horsepower rig under a long-term arrangement, valuing it at more than US$20 million, roughly KSh2.6 billion.

The Kenya Ports Authority is currently handling the offloading process at Kilindini Port.

Once offloading wraps up, the rig faces a long road journey by truck, all the way from Mombasa to Turkana County, where drilling preparations are already underway.

Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh confirmed that the equipment will undergo commissioning and acceptance checks before drilling gets underway.

The company targets November 1, 2026, for the first well to be drilled as part of the development's initial phase.

"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 scale of what's riding on this single rig is significant.

It's headed for the South Lokichar Basin development, a project valued at KSh774 billion, roughly US$6 billion, ranking it among the largest energy investments anywhere in East Africa.

Under the first phase of the project, Gulf Energy plans to produce an initial 20,000 barrels of crude oil per day.

The figure is expected to scale up to 50,000 barrels per day during the second phase.

The company brought Baker Hughes on board to deliver Integrated Well Services and contracted SLB to build the Early Production Facility that will support the project going forward.

The GW70 previously worked on projects for the Abu Dhabi National Oil Company, where it built a consistent record for safety and reliability.

Government projections suggest the South Lokichar fields could generate lifetime revenues of KSh371 billion, approximately US$2.9 billion, over the project's lifespan.

The figures remain dependent on global oil prices and total production volumes achieved.

Elsewhere, President William Ruto toured the Dangote Petroleum Refinery in Lekki, Nigeria, ahead of the planned launch of the much larger industrial project being developed in Lamu, Kenya.

The visit came at the invitation of Dangote Group President and CEO Aliko Dangote as final preparations gather pace for the Kenyan refinery.

The Lekki facility is a useful reference point for what Dangote is seeking to build on Kenya’s coast.

The Nigerian refinery has a nameplate capacity of 700,000 barrels of crude oil a day and is an integrated complex combining refining, storage, marine infrastructure and petrochemicals.

Dangote says its crude processing unit currently has a capacity of about 687,643 barrels per day, with the plant designed around the 700,000-barrel level.