Tullow Oil has finalised the sale of its Kenyan operations to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, in a deal valued at a minimum of $120 million. The agreement includes the transfer of all of Tullow’s working interests in Kenya through its subsidiary, Tullow Kenya BV, to Gulf Energy.
The transaction, which was initially announced in July, has now met all conditions under the Sale and Purchase Agreement (SPA). Tullow confirmed receipt of $40 million from Tranche A, with additional payments and adjustments expected.
In a statement published on the London Stock Exchange, the company said proceeds from the sale will be used to strengthen its balance sheet and support capital restructuring efforts. Tullow will also retain the right to royalty payments, subject to certain conditions, and a no-cost option to participate in 30% of any future development projects.
Tullow entered Kenya in 2011 with hopes of discovering commercially viable oil reserves. While the company made significant progress, including confirming oil deposits in Turkana, commercial production remained elusive.
“After 14 years in Kenya, Tullow leaves behind strong assets, and we are delighted to pass the baton to Gulf Energy, a capable Kenyan company in the lead to first oil, making Kenya an oil-producing country,” said Madhan Srinivasan, Managing Director of Tullow Kenya BV.
He added that Tullow was grateful for the support it had received from the Kenyan government, regulators, and local communities in Turkana over the years.
Gulf Energy, a Nairobi-based energy firm with investments across oil, gas, and power, has pledged to fast-track development of Kenya’s oil resources.
Paul Limoh, Chief Executive Officer of Gulf Energy Ltd, said the acquisition underscores the company’s commitment to advancing Kenya’s domestic energy security.
“We are delighted to complete this transaction and to bring these assets under the stewardship of Gulf Energy Ltd. This project will play an important role in advancing Kenya’s domestic energy sector, creating employment, and supporting economic development in the Turkana region,” Limoh said.
For Tullow Oil, the sale comes at a critical time as the company continues to reduce debt and refocus its portfolio. The London-listed firm has faced years of financial strain amid falling production in other markets and fluctuating oil prices.
Ian Perks, Chief Executive Officer of Tullow, said: “The successful completion of this transaction marks a significant milestone for the company and enhances the commercial alignment of one of our key 2025 strategic priorities. The use of proceeds helps to strengthen our balance sheet further, and I would like to thank the team for their hard work and commitment.”
Kenya has long been seen as one of East Africa’s most promising energy frontiers, particularly after oil was discovered in Turkana County more than a decade ago. However, delays in infrastructure development, including an export pipeline and shifting global energy priorities slowed progress.
The Turkana region, one of Kenya’s least developed areas, has been at the centre of the oil exploration debate. Local communities have long expected oil development to deliver jobs, infrastructure, and social investment.
By acquiring the assets, Gulf Energy has pledged to honour community agreements and enhance social impact initiatives in the region.
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