Tullow Oil Exits Kenya With $120m Sale to Auron Energy
Tullow Oil plc has completed the sale of its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, marking its exit from the East African nation after 14 years.
The transaction, first announced on July 21, 2025, involved the transfer of 100% of the shares in Tullow Kenya BV for a minimum cash consideration of US$120 million, subject to customary adjustments.
Tullow has received the first tranche of proceeds, valued at US$40 million, with the remaining amount due under the terms of the Sale and Purchase Agreement (SPA).
Proceeds from the sale will be used to strengthen Tullow’s balance sheet as the company prepares to refinance its capital structure later this year.
“This successful completion marks a significant milestone for the company and the achievement of another one of our key 2025 strategic priorities,” said Tullow CEO Ian Perks. “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 positioned the company strongly.”
As part of the transaction, Tullow retains royalty payments subject to certain conditions, as well as a no-cost back-in right for up to 30% participation in potential future development phases.
Gulf Energy CEO Paul Limoh said the acquisition would play an important role in strengthening Kenya’s domestic energy sector. “This project will create opportunities for growth and development in the Turkana region, as well as supporting the country’s long-term energy security,” he stated.
Tullow’s exit from Kenya follows years of investment in the country’s oil exploration and development, with Gulf Energy now set to drive forward the project in partnership with stakeholders.
