Tullow Oil Sells Kenya Assets to Auron Energy for $120M in Strategic West Africa Shift
Tullow Oil has reached a definitive agreement to sell its entire stake in Kenya to Auron Energy E&P, an affiliate of Gulf Energy Ltd, in a deal valued at a minimum of $120 million in cash.
This transaction marks Tullow’s complete exit from Kenya, where it previously held 463 million barrels of 2C contingent oil resources in the South Lokichar Basin.
The payment will be structured in three phases:
An initial $40 million upon closing of the deal.
A second $40 million by mid-2026, contingent upon approval of the Field Development Plan (FDP).
A final $40 million to be paid between 2028 and 2033, based on future oil price conditions.
As part of the agreement, Tullow has secured additional upside through royalty payments and retains a 30% no-cost back-in right for future development phases, should a new strategic investor join the project.
Auron Energy will take over all associated environmental and decommissioning liabilities, pending necessary regulatory approvals, including clearance from Kenya’s Competition Authority.
Richard Miller, interim CEO and CFO of Tullow Oil, stated that the divestment aligns with the company’s strategic focus on high-margin assets in West Africa and supports efforts to strengthen its financial foundation.
This move follows Tullow’s earlier $300 million asset sale in Gabon, positioning the company to generate approximately $380 million in 2025. The capital will be used to reduce debt and optimize its balance sheet.
Upon completion, the transaction will remove the Kenyan assets from Tullow’s financial statements and is expected to increase operating profit before tax by approximately $145 million, largely due to the write-off of exploration costs.
