NAIROBI — In a major shake-up in East Africa’s oil scene, Tullow Oil has announced a groundbreaking agreement to offload its entire stake in Kenyan operations to Gulf Energy Ltd for at least $120 million.
The landmark deal includes $80 million in near-term cash: $40 million upfront and another $40 million due upon approval of the Field Development Plan (FDP) or by June 30, 2026. A further $40 million will be paid over five years starting in Q3 2028, with Tullow also eligible for royalty payouts based on certain conditions. The company retains a strategic back-in right to participate up to 30% in future development phases—without spending a dime.
“This transaction gives us a serious cash boost while cutting back our capital exposure,” said Richard Miller, Tullow’s CFO and Interim CEO. “Paired with the $300 million from the recent Gabon asset sale, this deal positions us perfectly for a solid refinancing path.”
Gulf Energy will take over all liabilities, past and future, once regulatory approvals are cleared. Full Sale and Purchase Agreements are expected in the coming months with the deal closing in 2025.
Source: worldoil.com
