Tullow oil Plc has completed the sale of its Kenyan oil assets through its subsidiary, Tullow Overseas Holdings BV to Auron Energy E&P Limited, an affiliate of Gulf Energy Limited.
The move follows the satisfaction of all conditions precedent under the Sales and Purchase Agreement (SPA) announced in July 2025, where Tullow Oil agreed to sell the assets for at least $120 million (KES 15.5 billion).
In a press release by the London Stock Exchange, the upstream oil company confirmed the receipt of the first tranche of $40 million (KES 5.17 billion). Tullow Oil expects to receive the second tranche of $40 million after approval of the Field Development Plan, or on June 30, 2026. The third tranche will be paid in smaller installments over five years, beginning in the third quarter of 2028.
According to Tullow Oil Plc Chief Executive Officer, Ian Perks, the proceeds of the transaction will be used to strengthen the company’s balance sheet, a move that meets one of Tullow’s key 2025 strategic priorities.
“The successful completion of this transaction marks a significant milestone for the company and the achievement of another one of our key 2025 strategic priorities. The use of the proceeds helps to strengthen our balance sheet further, and I would like to thank the team for their hard work and commitment, which have helped position the company strongly as we look to refinance our capital structure this year,” said Mr. Perks.
Tullow Oil Plc will also retain royalty payments under certain conditions: if the project achieves financial success, Tullow will receive a small percentage of the profit. The international oil company reserves the right to own 30% of the project’s future developments if only a third party joins. Additionally, Tullow will not bear any costs from previous operations, giving it flexibility that if the project realizes a good Return on Investment (ROI), it can still benefit.
End of Tullow Oil Plc Presence in Kenya
The completion of the transaction marks the end of 14 years of the oil company’s operations at the Lokichar Basin, Turkana. In this regard, Tullow Kenya BV expressed its gratitude to the Government of Kenya and its agencies, including the Ministry of Energy and Petroleum, Energy and Petroleum Regulatory Authority (EPRA), and the County Government of Turkana, for their unwavering support since 2011.
“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 up to first oil, making Kenya an oil producing country. We are grateful for the support and cooperation extended to TKBV by various stakeholders in the Government of Kenya,” said Tullow Kenya BV Managing Director, Madhan Srinivasan.
On the other hand, Gulf Energy expressed delight at the successful asset acquisition. The energy firm’s Chief Executive Officer, Paul Limoh highlighted the project as a key driver for expansion in Kenya’s domestic energy sector and an avenue for growth opportunities and development in Turkana. He added that the project will play a key role in supporting Kenya’s long-term energy security.
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