Gulf Energy to Acquire Tullow Oil’s Kenyan Portfolio for $120M

Energy development firm Gulf Energy has signed a Heads of Agreement with independent energy company Tullow Oil for the acquisition of its Kenyan subsidiary, Tullow Kenya. The $120 million deal covers Tullow’s entire asset base in Kenya and features a back-in right clause allowing Tullow Oil to acquire a 30% participation in future development phases at no cost.

Under the terms of the agreement, Gulf Energy will pay $40 million upon completion of the deal and an additional $40 million following the approval of the Field Development Plan or by June 30, 2026. The final $40 million installation is payable over five years from Q3 2028. A Sale and Purchase Agreement is targeted for the coming months, with receipt of first payment expected in 2025.

“I am confident that the proceeds from this transaction, coupled with the $300 million from the disposal of our assets in Gabon, position the business strongly for a successful refinancing. We look forward to working with Gulf Energy, who have the requisite financing to complete the transaction and are a strong and credible counterparty, and by doing so, unlock material value for the people of Kenya,” said Richard Miller, CFO and Interim CEO, Tullow Oil.