Kenya Electricity Generating Company PLC (KenGen) is the leading power producer in East Africa and is responsible for over 80 percent geothermal well drilling in the region.
Through a diversification strategy, the company also majors in other energy-related services, including commercial drilling and geothermal consultancy across Africa.
In February 2019, KenGen won a joint Kshs.7.6 billion contract _ with Shandong Kerui Petroleum Equipment Company and Shandong Kerui Oilfield Service Group, to offer consultancy services and drill geothermal wells in Ethiopia.
Through their website, the company has informed the public that it has started drilling the first geothermal well, setting in motion Phase II of the Ksh.7.6 billion contract.
The First Phase of the project entailed the purchase of drilling rigs, while the second Phase entailed the provision of drilling services. KenGen will be supplying about 30 percent of the components of Phase II, which translates to about Ksh.620 million.
Under the project _ that is financed by the World Bank, two rigs will be used to drill eight wells in Lot 1, with an expected revenue of Ksh.620 million.
Each rig is expected to drill four wells within a period of one year and depending on the outcome of Lot 1 wells, an additional 12 wells may be drilled under Lot 2 bringing the total to 20 wells.
The company’s Managing Director and CEO Rebecca Miano said that the company had drilled 29 metres so far and is expected to drill about 3,000 metres.
She also added that a single well will take about two months to complete and that they will mobilize specialized drilling services crew to ensure the project is a success and the implementation period is shortened.
In October 2019, the company secured another Ksh.5.8 billion contract, to drill 12 geothermal wells in Ethiopia. The contract included the installation of a water supply system and equipment, building a steam collection and injection system, followed by the installation of a water-cooled condensing steam plant.
The project was to be implemented in two phases _ with a target of 150MW of geothermal power generation capacity.
The developers planned to commission an initial 50MW (phase 1) by 2023 and a second phase of 100MW by 2025. KenGen was contracted to implement the first phase of the geothermal project under a Ksh.5.8 billion contract.
KenGen was to drill eight wells _ with one geothermal well costing Ksh.650 million, and offer a geo-scientific survey.
In February this year, KenGen won an international contract to drill three geothermal wells in Djibouti and is prospecting to get the same contract from Rwanda.