KenGen begins drilling well for Kshs. 7.6B Ethiopian geothermal project – KBC

Kenya Electricity Generating Company says it has commenced drilling the first well for Ethiopia Electricity Power (EEP) under the Kshs. 7.6 billion contract.

Commencement of drilling in Phase II of the project follows completion of Phase I of the contract by the consortium partners under which two rigs were delivered at Aluto site in Ethiopia.

The First Phase entailed purchase of drilling rigs while Phase II entails provision of drilling services with KenGen supplying about 30% of the component of Phase II which translates to about USD 6.2 million (about Ksh.620 million).

The well will be drilled to a depth of 3000 metres.

“The exercise started on Saturday, May 29, 2021, whereby the first hole section was drilled to 29 meters within eight hours. So far, drilling operations are running smoothly as the team moves to the next hole section. Drilling a single well takes about two months to complete. We however hope to shorten this period despite the prevailing circumstances brought about by Coronavirus Disease (COVID-19),” said Rebecca Miano, CEO KenGen.

The Ethiopian geothermal power project which is funded by the World Bank through a loan to the Ethiopian Government will see a total of eight wells being drilled in Lot 1 using two rigs with an expected revenue of Ksh.620 million (USD 6.2 million).

Each rig is expected to drill four 4 wells within a period of one year.

Depending on the outcome of Lot 1 wells, an additional 12 wells may be drilled under Lot 2 bringing the total to 20 wells, according to the NSE listed power generator.

According to Miano KenGen would within the next three weeks mobilize specialized drilling services crew including aerated drillers, directional drillers, and reservoir engineers to ensure the project was a success.

She said KenGen was keen on offering expert services in electricity generation, geothermal development consulting, power plant operation and maintenance and other related services across Africa.

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