Tullow Oil Exits Kenya After Selling Assets to Gulf Energy Ltd

Last Updated on September 26, 2025 by Turkana County News Online

Nairobi, September 26, 2025 – Tullow Oil plc has officially completed the sale of its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, marking the company’s exit from the country after 14 years of operations.

The transaction, announced in July 2025 under a Sale and Purchase Agreement (SPA), has now been finalized with Tullow confirming receipt of the full US$40 million (Tranche A) payment. The deal represents the transfer of 100% of the shares in Tullow’s subsidiary, Tullow Kenya BV, for a total minimum cash consideration of US$120 million, subject to customary adjustments.

Tullow Kenya BV Managing Director Madhan Srinivasan said the proceeds would help strengthen Tullow’s balance sheet. He added that the company will retain royalty payments, subject to certain conditions, and a no-cost back-in right for a 30% stake in potential future development phases. Srinivasan also thanked the Government of Kenya, the Energy and Petroleum Regulatory Authority (EPRA), the Ministry of Energy and Petroleum, and the Turkana County Government 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, as the country edges closer to becoming an oil-producing nation,” Srinivasan said.

Gulf Energy CEO Paul Limoh welcomed the transaction, terming it a major step for Kenya’s domestic energy sector and long-term energy security. “This project will create opportunities for growth and development in the Turkana region while strengthening the country’s energy future. We thank Tullow for its years of investment and commitment, and we look forward to taking the project forward with stakeholders,” Limoh stated.

Tullow CEO Ian Perks described the deal as a significant milestone in the company’s 2025 strategic priorities. “The successful completion of this transaction strengthens our balance sheet and marks another step in our corporate restructuring. We wish the people and Government of Kenya, as well as Gulf Energy, every success as they advance this project,” Perks said.

Tullow first entered Kenya in 2011, spearheading oil exploration activities in Turkana County. The transfer to Gulf Energy Ltd is expected to accelerate development in the region, paving the way for Kenya’s ambition to join the ranks of oil-producing countries.