Nairobi — Tullow Oil plc (Tullow) has finalised 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 July 21, 2025.
In a press statement published on the London Stock Exchange, Tullow confirmed receipt of the full proceeds of Tranche A, which is $40 million, under the terms of the SPA. The second payment of $40 million will be payable next year, followed by a final batch of a similar amount in 2028.
“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,” Tullow Kenya BV Managing Director Madhan Srinivasan 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 percent participation in potential future development phases.
“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.
