Gulf Energy to acquire Tullow Oil Kenyan assets after deal
NAIROBI, Kenya, July 22 – Auron Energy E&P Limited, an affiliate of Kenya’s Gulf Energy, will acquire Tullow Oil Kenyan assets after signing a sale and purchase agreement.
The deal, which was signed by Tullow Overseas Holdings BV, the parent company of the local entity, is valued at $120 million (Sh15.5 billion).
Payments have been split into two tranches, with an initial settlement of $40 million due on completion, $40 million payable at the earlier of Field Development Plan (FDP) approval or June 30, 2026, and $40 million payable in 2028.
“We are pleased to announce the signing of the Kenyan SPA, marking another step closer to completion of the Transaction with Gulf Energy. For a total consideration of at least US$120 million, the Transaction supports our strategic priority to strengthen the balance sheet, with the first two payments totalling US$80 million expected before the end of the year,” Richard Miller, Chief Financial Officer and Interim Chief Executive Officer, Tullow, said.
“Furthermore, we are pleased to retain a potentially material zero-cost value option to participate in future development phases,” he added.
“We continue to advance plans to optimise our capital structure during 2025. Coupled with the sale of our Gabonese assets, the disposal of these non-core assets is expected to provide cash proceeds of US$380 million in 2025.”
