NAIROBI,Kenya– Tullow Oil has completed the sale of its entire Kenya business to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, for a minimum cash consideration of US$120 million.
The deal, announced in July, transfers Tullow’s full working interests in Kenya to Auron Energy and marks the end of the British explorer’s 14-year presence in the country.
Proceeds will go toward strengthening Tullow’s balance sheet as the company moves to refinance its capital structure.
“The transaction represents the sale of 100% of the shares in Tullow’s subsidiary Tullow Kenya BV, which holds Tullow’s entire working interests in Kenya, for a minimum cash consideration of US$120 million, subject to customary adjustments,” said Tullow Kenya BV Managing Director Madhan Srinivasan.
“After 14 years in Kenya, Tullow leaves behind strong assets, and we are delighted to pass the baton to Gulf Energy, a capable Kenyan company in the lead up to first oil, making Kenya an oil-producing country.”
The agreement allows Tullow to retain royalty payments under certain conditions, as well as a no-cost back-in right for a 30% stake in future development phases.
The company also acknowledged support from the Ministry of Energy and Petroleum, EPRA, and Turkana County, which hosts Kenya’s oil fields.
Gulf Energy Ltd CEO Paul Limoh welcomed the deal, saying: “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.”
Tullow CEO Ian Perks described the exit as a “significant milestone” for the company.
“The successful completion of this transaction marks the achievement of another one of our key 2025 strategic priorities. The use of proceeds helps to strengthen our balance sheet further, and I would like to thank the team for their hard work and commitment,” he said.
The sale is expected to pave the way for Gulf Energy to lead Kenya’s stalled oil project toward production, a milestone the government has pursued for over a decade.
