Tullow Oil exits the Kenyan market after selling entire business
Tullow Oil exits the Kenyan market after selling entire business
Tullow Oil has officially exited the Kenyan market after completing the sale of its entire working interest in the country to Aquron Energy E&P Limited, an affiliate of Gulf Energy Ltd.
In a press release on Friday, September 26, Tullow Oil said the deal follows the satisfaction of all conditions set under the Sale and Purchase Agreement (SPA) that was first announced on July 21, 2025.
In its statement published on the London Stock Exchange, Tullow confirmed that it had received the full proceeds of Tranche A, valued at $40 million (Ksh5.16 billion), in line with the terms of the SPA.
Tullow Kenya BV Managing Director Madhan Srinivasan confirmed the successful completion of the deal.
“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 (Ksh15.48 billion), subject to customary adjustments,” he said.
Madhan noted that proceeds from the sale will be channeled towards strengthening the company’s balance sheet.
He added that Tullow will also retain certain rights linked to the project, including royalty payments and a no-cost back-in right for a 30% participation in potential future development phases.
Madhan also extended appreciation to various government institutions and partners that had supported Tullow’s operations since 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, making Kenya an oil-producing country. We are very grateful for the support and co-operation extended to TKBV by various stakeholders in the Government of Kenya,” he added.
On the buyer’s side, Gulf Energy Ltd Chief Executive Officer Paul Limoh welcomed the acquisition and highlighted its importance to Kenya’s energy future.
“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.
“We thank Tullow for its years of investment and commitment, and we look forward to building on that foundation as we work with partners and stakeholders to take the project forward,” he said.
Tullow CEO Ian Perks also reflected on the transaction, describing it as a key milestone in the company’s 2025 strategy.
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“The successful completion of this transaction marks a significant milestone for the company and 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, which have helped position the company strongly as we look to refinance our capital structure this year.
“On behalf of everyone at Tullow, I extend our best wishes to the people and Government of Kenya and wish Gulf Energy every success as they advance this project,” he remarked.
Tullow Oil entered Kenya in 2010; two years later, in 2012, Tullow made a major discovery in the South Lokichar Basin, Turkana County, when it confirmed commercially viable oil reserves.
Tullow worked alongside partners Africa Oil Corporation and TotalEnergies to develop the project.
Together, they sought to build the necessary infrastructure, including oil wells, processing facilities, and a pipeline to transport crude oil from Turkana to the Kenyan coast.
The company also launched the Early Oil Pilot Scheme (EOPS) between 2018 and 2020, which tested production and allowed limited exports.
Despite the promising start, the project faced major challenges, including infrastructure as transporting crude oil by road was neither sustainable nor cost-effective.
Regulatory delays also slowed progress, with repeated revisions and extensions to the Field Development Plan (FDP).
Matters worsened when Africa Oil and TotalEnergies exited the project in 2023, leaving Tullow as the sole operator.
In 2024, Tullow wrote off about $145 million (Ksh18.70 billion) from its Kenyan operations, underlining the project’s financial strain.
In April 2025, Tullow announced it was exiting Kenya altogether and sold its entire stake in the South Lokichar Basin to Gulf Energy Ltd.
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