Tullow Oil Exits Kenya in Massive $120 Million Deal with Gulf Energy
In a stunning development that marks the end of an era, Tullow Oil has agreed to sell its entire Kenyan operations to Auron Energy E&P, an affiliate of Gulf Energy Ltd, for a minimum of $120 million, sources confirmed today.
The blockbuster deal represents Tullow’s complete withdrawal from East Africa, where the company holds a staggering 463 million barrels of 2C oil resources in the South Lokichar Basin. Under the agreement’s structured payment plan, $40 million will change hands immediately upon completion, with additional tranches of $40 million due by mid-2026 following Field Development Plan approval, and a final $40 million between 2028 and 2033.
In a strategic move, Tullow will retain a 30% no-cost back-in right for future development phases should third-party investors join the project, while also securing ongoing royalty payments. The buyer will assume all decommissioning and environmental liabilities as part of the transaction.
Tullow’s interim CEO and CFO Richard Miller described the sale as perfectly aligned with the company’s refocused strategy on high-margin West African production. Combined with the earlier $300 million Gabonese asset sale, the company expects to generate $380 million in proceeds during 2025, fueling aggressive debt reduction and capital structure optimization.
The transaction, pending regulatory approvals including clearance from Kenya’s Competition Authority, will boost Tullow’s operating profit before tax by approximately $145 million due to exploration cost write-offs.
Source: oilandgasmiddleeast.com
