KenGen team on site in Ethiopia (source: KenGen) Kenya’s KenGen has successfully concluded drilling the deepest geothermal well in Ethiopia, the second well out of planned eight for state-owned EEP in Ethiopia.
Kenya Electricity Generating Company (KenGen) reports having completed drilling the deepest geothermal well in Ethiopia. The company is currently drilling wells under contract for Aluto-Langano geothermal project for state-owned power company Ethiopia Electric Power in the country.
This is the second well of a contracted total of eight wells, and it was drilled to a depth of 3,000 m, extending the target depth of initially planned 2,750 meters.
With its drilling services, KenGen has built additional revenue streams as part of a diversification strategy. Beside the drilling for EEP in Ethiopia, the company has been drilling two wells for the Tulu Moye geothermal project in Ethiopia and is currently drilling a third one. Earlier this year, KenGen ecured another drilling contract for ODDEG in Djibouti and is prospecting for similar partnerships locally and in other countries in the region.
According to KenGen’s Finance and ICT Director, John Mudany, the NSE-listed firm has seen significant growth in its revenues attributed to income from the projects in Ethiopia.
“Our revenue increased by 4 per cent from Sh44 billion to about Sh46 billion in 2021 partly attributed to revenues from our diversification venture at Tulu Moye in Ethiopia,” Mudany said.
“The ongoing geothermal drilling services in Tulu Moye contributed about Sh1.7 billion compared to only Sh440 million in the last financial year.”
How the current state of emergency in Ethiopia will affect the company is currently unclear. KenGen is monitoring the situation and is ” optimistic that the unfolding situation will be resolved speedily through peaceful means.”