KenGen buys three additional rigs to cut cost in imminent geothermal drilling campaign
Olkaria geothermal plant, Naivasha, Kenya (source: Lydur Skulason, creative commons)
Alexander Richter
23 Dec 2016
KenGen has acquired three additional drilling rigs to cut down cost and speed up its drilling campaign for further geothermal development in Olkaria.
Drilling cost is a concern for all geothermal projects and developers are always looking to cut cost. So it is no surprise that Kenya Electricity Generating Company (KenGen) is looking at ways to do the same. Now, KenGen has acquired three additional drilling rigs and hopes to cut the cost for its geothermal drilling activities by about 40%.
In a statement to the Nairobi Securities Exchange, Resources Development Manager Peketsa Mangi said, that with this step the company saves on the higher cost for renting rigs like it has done in the past. From a drilling cost of $6 million (Sh613.80 million), KenGen expects the cost to drop down to $3.5 million (Sh358.05 million)
“This is a drop of around 40 per cent in terms of cost, and this is a boost in accessing more geothermal power which is more reliable and affordable compared to hydro or thermal,” Mangi said the Star paper in Kenya.
So far there have been 287 geothermal wells drilled in Olkaria, and with the new wells the company expects to be able to drill at least additional five wells every year. Two of the wells are big enough to drill down to 5,000-7,000 meters deep.
“The two rigs will drill vertically while the third rig can drill 2.5km. We expect to increase the number of wells and geothermal generated through them,” he said.
Work on the 140 MW Olkaria V geothermal power project will start early next year, funded by JICA.
Source: The Star
