Tullow Seals Kenya Assets Sale Deal

Nairobi, Kenya — September 27, 2025 (EAT).

Tullow Oil Plc (Tullow) has finalised the sale of its entire working interest in Kenya, marking its exit from the country after more than a decade in the oil sector. The assets were transferred to Auron Energy E&P Limited, a subsidiary of Gulf Energy Ltd, under a deal valued at USD 120 million. 

The Deal in Detail

• The transaction covers 100% of the shares in Tullow Kenya BV, the company holding Tullow’s Kenyan oil assets. 

• Gulf Energy (via Auron) has already paid USD 40 million as the first tranche of the payment. 

• Tullow retains some royalty rights tied to the assets and a no-cost back-in option for 30 percent participation in future development phases. 

• The sale had been announced earlier in 2025, and this completion effectively ends Tullow’s 14-year presence in Kenya’s oil exploration and production space. 

Context & Rationale

• Tullow’s decision to exit Kenya is in line with its strategic shift to reduce debt—part of a broader de-risking plan. 

• The Kenyan assets—largely in the Lokichar Basin—had not reached full commercial production by the time of the sale, largely due to infrastructure and logistics constraints such as pipeline access and the high cost of export routes. 

• Previous partners like TotalEnergies and Africa Oil had exited earlier, leaving Tullow with sole operating responsibility before its divestment. 

Implications & What to Watch

• Acceleration of Kenyan control: Gulf Energy will now lead the development in the Lokichar oilfields, bearing the burden of pushing the projects forward. 

• Pressure on realization: The deal shifts expectations to Gulf to deliver tangible production, infrastructure (pipelines, export capacity) and attract partnerships.

• Revenue stakes: Tullow’s retained royalty rights and back-in option mean it could benefit if the asset is successful under new ownership.

• Sector confidence & investment flows: The transaction may influence the appetite of other players in Kenya’s upstream oil and gas industry, particularly in frontier areas.

• Regulatory clarity: Gulf and Kenya must navigate licensing, environmental, and fiscal terms to maintain investor confidence.