Tullow Oil plc (Tullow) 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 (US$40 million) under the terms of the SPA.
Tullow Kenya BV Managing Director Madhan Srinivasan confirmed the successful sale completion.
“The transaction represents the sale of 100% 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 US$120 million, 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% 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 said.
On his part, Gulf Energy Ltd Chief Executive Officer Paul Limoh said: “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 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.”
Ian Perks, Chief Executive Officer of Tullow, commented: “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 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.”
