Tullow Oil plc has finalized the sale of its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, marking a complete exit from the country after more than a decade of exploration and investment.
The company announced that all conditions under the Sale and Purchase Agreement (SPA), originally unveiled on 21 July 2025, had been satisfied and the first tranche of proceeds received.
Tullow’s Chief Executive Officer, Ian Perks, hailed the deal as a crucial step in strengthening the company’s financial position and executing its 2025 strategic priorities.
“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.”
Ian Perks, Tullow’s Chief Executive Officer
Under the terms of the deal, Tullow has divested 100% of the shares in its subsidiary, Tullow Kenya BV, for a minimum consideration of US$120 million, subject to customary adjustments.
The company confirmed it had already received Tranche A of US$40 million, with the remaining payments due under the agreed structure.
The transaction represents the end of Tullow’s 14-year presence in Kenya, where it was one of the earliest international oil firms to explore opportunities in the Turkana region.
While exiting operations, the company will retain rights to royalty payments, conditional on production milestones, and a no-cost back-in right for a 30% stake in potential future development phases.
“The use of proceeds helps to further strengthen our balance sheet 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.”
Ian Perks, Tullow’s Chief Executive Officer
Perks also used the occasion to reflect on the company’s departure from Kenya.
“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.”
Ian Perks, Tullow’s Chief Executive Officer
Gulf Energy’s Vision for Kenya
The transaction also represents a new chapter for Kenya’s oil sector. Gulf Energy, a key player in the East African energy market, welcomed the acquisition through its affiliate, Auron Energy.
Paul Limoh, CEO of Gulf Energy Ltd, emphasized the importance of the project for Kenya’s long-term energy security.
“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.”
Paul Limoh, CEO of Gulf Energy Ltd
He credited Tullow for its investment and commitment over the years, pledging to build on that foundation.
“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.”
Paul Limoh, CEO of Gulf Energy Ltd
The Kenyan sale follows Tullow’s recent divestment in Gabon, where in July the company completed the transfer of all its non-operated working interests to the Gabon Oil Company.
That deal, valued at US$307 million net of tax and adjustments, was part of a broader restructuring strategy aimed at streamlining operations and reinforcing the balance sheet.
Tullow has been focusing on its core assets in West Africa, particularly in Ghana, while shedding non-core operations elsewhere.
The dual exits in Kenya and Gabon are seen as significant steps toward reshaping the company into a leaner, more financially stable energy player.
Leadership Transition
The transaction comes just weeks after the appointment of Ian Perks as Tullow’s new Chief Executive Officer. Perks officially took up his role on 15 September 2025, succeeding Richard Miller, who had served as interim CEO and has now returned to his role as Chief Financial Officer.
The leadership transition is viewed as an important phase in Tullow’s turnaround strategy, with Perks expected to lead the refinancing of the group’s capital structure and oversee its reorientation toward profitability.
With its exit from Kenya, Tullow is closing a chapter marked by both promise and challenges in East Africa’s frontier oil sector.
As global energy markets continue to evolve, the transaction underscores a shifting dynamic: international oil majors retreating from higher-risk frontier plays while regional companies step in to advance domestic energy ambitions.
For Tullow, the divestment frees up resources to reduce debt, reward shareholders, and position the company for growth in its most profitable areas.
For Kenya, the arrival of Gulf Energy signals renewed hope that long-stalled projects may finally move toward production.
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