Tullow Oil has finalized a deal to sell its entire stake in Kenya to Auron Energy E&P, a Gulf Energy Ltd affiliate, for at least $120 million in cash.
This agreement ends Tullow’s operations in Kenya, where it previously held 463 million barrels of 2C oil resources in the South Lokichar Basin.
The payment structure includes $40 million upon deal closure, another $40 million by mid-2026 following Field Development Plan approval, and the final $40 million between 2028 and 2033, depending on oil price conditions.
Tullow secured additional benefits through royalty payments and retained a 30% no-cost back-in right for future development stages if a new investor joins the project.
As part of the deal, Auron Energy will assume all decommissioning and environmental obligations tied to the assets, pending regulatory approval, including from Kenya’s Competition Authority.
Richard Miller, Tullow’s interim CEO and CFO, emphasized that the divestment supports the company’s strategy to prioritize high-margin assets in West Africa and improve its financial position.
Together with its earlier $300 million asset sale in Gabon, Tullow aims to generate $380 million in 2025 to reduce debt and optimize its capital structure.
Once completed, the transaction will remove the Kenyan assets from Tullow’s financial books and is expected to boost the company’s operating profit before tax by roughly $145 million due to exploration cost write-offs.
source: www.oilandgasmiddleeast.com
African Energy Council