Tullow Sells Kenyan Assets in $120M Deal

Independent energy company Tullow Oil has signed an agreement to sell 100% of its working interests in Kenya to Gulf Energy for $120 million. The assets include approximately 463 million barrels of 2C contingent resources.

The payment will be made in three stages: an initial $40 million upon regulatory approval and closure of the transaction; a second $40 million upon approval of the projects’ development plan by June 30, 2026; and the final $40 million over a five-year period as from Q3 2028. Tullow Oil retains the option to participate in future developments with up to a 30% stake.

“The Transaction supports our strategic priority to strengthen the balance sheet, with the first two payments totaling US$80 million expected before the end of the year,” stated Richard Miller, CFO and Interim CEO, Tullow Oil.

Coupled with the sale of Tullow Oil’s assets in Gabon, the deal increases the company’s working capital in 2025 by $380 million, according to Miller.