Tullow Oil plc has officially completed the sale of its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd. The deal follows the satisfaction of all conditions outlined in the Sale and Purchase Agreement (SPA) signed on 21 July 2025.
In its announcement on the London Stock Exchange, Tullow confirmed receiving the full proceeds of Tranche A (US$40 million) under the SPA. The total minimum cash consideration for the transaction is US$120 million, subject to customary adjustments.
Madhan Srinivasan, Managing Director of Tullow Kenya BV (TKBV), emphasized that the transaction represents the transfer of 100% of shares in TKBV, which holds Tullow’s working interests in Kenya. He noted that the proceeds will be used to strengthen Tullow’s balance sheet. Tullow will also retain royalty payments under certain conditions and a no-cost back-in right for 30% participation in any future development phases.
Srinivasan expressed gratitude to the Government of Kenya, including the Ministry of Energy and Petroleum, the Energy and Petroleum Regulatory Authority (EPRA), and the County Government of Turkana, for their support since Tullow entered Kenya in 2011.
“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,” Srinivasan said.
Gulf Energy CEO Paul Limoh welcomed the deal, highlighting its potential to advance Kenya’s domestic energy sector, create opportunities in Turkana, and boost national energy security.
Tullow CEO Ian Perks described the sale as a key strategic milestone for 2025, reinforcing the company’s balance sheet while wishing Gulf Energy success as it leads Kenya towards becoming an oil-producing nation.
