Tullow completes sale of Kenya assets to Gulf Energy Ltd:
Energy:
Tullow Oil plc (Tullow) was reputed with the discovery of oil reserves in Kenya and the consequent sinking of the wells for some time thereafter. Over time the company has apparently changed its plans and on September 26th, 202 announced the successful completion of the sale of its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, following satisfaction of all conditions precedent under the Sale and Purchase Agreement (SPA) announced on 21 July 2025.
In a press release published on the London Stock Exchange, Tullow has confirmed receipt of the full proceeds of Tranche A of K sh 5160 million (M) (US$40 M) under the terms of the SPA.
Contacted for comment, Tullow Kenya BV MD Madhan Srinivasan confirmed the successful sale completion. “The transaction represents the sale of 100 percent of the shares in Tullow’s subsidiary Tullow Kenya BV, which holds Tullow’s entire working interests in Kenya, for a minimum cash consideration of K sh 15480 million (M) (US$120 M), subject to customary adjustments,” Madhan said.
He added that the transaction proceeds will be used to strengthen Tullow’s balance sheet. Tullow will also retain royalty payments, subject to certain conditions, and a no-cost back-in right for a 30 per cent participation in potential future development phases.
He further expressed TKBV’s gratitude to various Government of Kenya arms and agencies including the Ministry of Energy and Petroleum, Energy and Petroleum Regulatory Authority (EPRA) and the County Government of Turkana among others for their 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 very grateful for the support and co-operation extended to TKBV by various stakeholders in the Government of Kenya,” he added.
Contributing his views to the development, Gulf Energy Ltd CEO Paul Limoh affirmed the firm’s delight in completion of the transaction that now rests all the assets under stewardship of Gulf Energy Ltd. “This project will play an important role in advancing Kenya’s domestic energy sector, creating opportunities for growth and development in the Turkana region, as well as supporting the country’s long-term energy security. We thank Tullow for its years of investment and commitment, and we look forward to building on that foundation as we work with partners and stakeholders to take the project forward,” explained Limoh.
Tullow’s CEO, Ian Perks, observed that the successful completion of the transaction marks a significant milestone for the company and the achievement of yet another of its crucial 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. On behalf of everyone at Tullow, I extend our best wishes to the people and Government of Kenya and wish Gulf Energy every success as they advance this project,” Perks said.
Notably, Tullow is an independent energy company that is building a better future through responsible oil and gas development in Africa. The Company’s operations are now focused on its core objective of producing assets in Ghana; it is committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030 and has a Shared Prosperity strategy that delivers lasting socio-economic benefits for its host nations. The Group is quoted on the London and Ghanaian stock exchanges (symbol: TLW). For further information, please refer to: www.tullowoil.com.
Meanwhile, Gulf Energy Limited is a Kenyan indigenous oil, gas and electric power player with focus on East Africa. The company has the largest refined products trading position in East and Central Africa and is a key player in Kenya’s power generation and oil infrastructure sectors. For further information, please refer to: https://gulfenergy.co.ke/
