Nairobi — Kenya's push to commence commercial crude oil production by the end of 2026 has gained momentum following the arrival of an onshore drilling rig for the South Lokichar oil development at the Port of Mombasa.

Gulf Energy E&P BV SEZ said the drilling rig arrived at Kilindini Port on Friday aboard MV Transit Sedanka after sailing from Duqm Port in Oman.

The arrival marks a major step in preparations for drilling operations in Turkana County, with the company targeting November 1, 2026, for the first well to be drilled as part of the initial phase of the South Lokichar development.

Gulf Energy E&P BV SEZ Chief Executive Officer Paul Limoh said the equipment was being offloaded by the Kenya Ports Authority before being transported by road to Turkana.

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"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 company said the GW70 rig, with a capacity of 1,500 horsepower, has been leased from Great Wall Drilling Company (GWDC) under a long-term arrangement.

The rig, valued at more than $20 million according to Gulf Energy, will undergo commissioning and acceptance checks before drilling begins.

Gulf Energy plans to produce an initial 20,000 barrels of crude oil per day under the first phase of the South Lokichar development before scaling production to 50,000 barrels per day in the second phase.

The company has contracted Baker Hughes to provide integrated well services, while SLB will deliver the Early Production Facility (EPF).

The South Lokichar development is being implemented under an estimated $6 billion investment programme.

Kenya has set December 2026 as the target for first oil from the South Lokichar Basin. EPRA has said the first crude exports from Mombasa are expected in the first quarter of 2027, in line with the approved Field Development Plan.

The project follows years of delays since oil was first discovered in the South Lokichar Basin, with development now progressing under Gulf Energy.

The Government has projected significant fiscal benefits from the development of the South Lokichar oil fields.

According to the projections cited in the project plans, Kenya could earn more than $2.9 billion (about Sh371 billion) over the lifetime of the project, depending on international crude oil prices and production volumes.

The initial development phase is expected to create activity across drilling, logistics, oilfield services and other support sectors as Kenya moves towards commercial oil production.

The arrival of the drilling rig in Mombasa now sets the stage for its transportation to Turkana, commissioning and the planned commencement of drilling operations on November 1.

The South Lokichar project is expected to mark Kenya's transition from an oil exploration country to a commercial crude oil producer.