Tullow Sells Kenyan Oil Assets to Gulf Energy for Ksh15.6 Billion
Tullow Oil, a British oil and gas corporation, has finally struck a deal to sell its entire commercial holdings in Kenya.
This marks the company’s official exit from the Kenyan market following more than a decade of exploration in the South Lokichar Basin.
The company is selling its assets to a Gulf Energy Ltd associate for around Ksh15.6 billion (USD120 million).
The transaction was verified after the two parties signed a sale and purchase agreement.
UK-based multinational Tullow Oil Plc is set to exit its operations in Kenya after signing a Ksh15.5 billion sale agreement with Gulf Energy Limited.
— The Kenya Times (@thekenyatimes) July 22, 2025
In a statement released on Monday, July 21, Tullow announced that its subsidiary, Tullow Overseas Holdings BV, has signed a Sale… pic.twitter.com/1pYBGJvhE4
Currently, Tullow’s Kenyan operations are managed by its subsidiary, Tullow Kenya BV.
However, under the current agreement, Tullow would sell all of its working rights in Kenya to Auron Energy E&P Limited, a Gulf Energy affiliate.
The transaction will also include all of Tullow’s working interests in Kenya, which total approximately 463 million barrels of contingent oil resources.
Tullow will get compensation in three stages.
This will comprise a payment of Ksh5 billion (USD 40 million) upon deal completion, followed by another Ksh5 billion due by June 2026 or upon government approval of the Field Development Plan.
Tullow Oil and Gulf Energy won a 6-month extension to file a development plan for Kenya’s Turkana oil fields, now due by December 2025.
— Kenyan Wall Street (@kenyanwalstreet) July 15, 2025
The $120M sale, announced in April, hinges on regulatory approval. Tullow eyes debt cuts as it also offloads Gabon assets to raise cash. [per… pic.twitter.com/cFyoZFdKfL
The third payment of Ksh5 billion, which will be made in instalments between 2028 and 2033, is heavily reliant on oil prices.
As part of the arrangement, Tullow will receive royalties based on future oil production.
In addition, the corporation has a no-cost option to re-enter the project with a 30% interest if a third party enters later.
While a substantial portion of the transaction has been completed, regulatory approvals, particularly those from Kenya’s Competition Authority, remain pending.
Tullow Kenya must also be fully separated from its parent company, with the transaction and first payment expected to close later this year.
According to Tullow Kenya Managing Director Madhan Srinivasan, the proceeds of the transaction will be used primarily to reduce debt and strengthen the company’s financial position.
The company’s pullout from Kenya can be ascribed to the Ksh19 million loss it sustained while operating in Kenya.
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Since 2023, the business has been the sole owner of the Lokichar oilfield.
Tullow’s decision to abandon Kenya may have a significant impact on the country’s ambitions to become an oil giant, especially since the Lokichar Basin in the country’s north is regarded as a crucial source of oil.
Kenya’s oil output has not reached full capacity, owing to a lack of infrastructure.
For example, establishing a consistent pipeline to transport oil from Turkana to the coast for export has been a long-standing issue.
Tullow Sells Kenyan Oil Assets to Gulf Energy for Ksh15.6 Billion
