Gulf Energy Limited has officially taken over Tullow Oil’s Kenya operations following the successful completion of a landmark transaction valued at a minimum of US$120 million.
The deal, executed through Auron Energy E&P Limited, a Gulf Energy affiliate, transfers 100% of Tullow’s shares in its Kenyan subsidiary, Tullow Kenya BV, marking Tullow’s exit from the country after 14 years.
Under the Sale and Purchase Agreement (SPA) first announced in July 2025, Tullow has already received an initial US$40 million payment, with further proceeds to follow.
The company said funds from the transaction will be directed towards strengthening its balance sheet as part of its broader strategic priorities for 2025.
Tullow retains a no-cost back-in right for up to 30% participation in potential future development phases and royalty payments, subject to specific conditions.
Tullow’s Chief Executive Officer, Ian Perks, hailed the transaction as a significant milestone:
“The successful completion of this transaction marks the achievement of one of our key 2025 strategic priorities. The use of proceeds helps to further strengthen our balance sheet. 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.”
For Gulf Energy, the acquisition represents a significant step in expanding its footprint in East Africa’s energy sector.
Paul Limoh, CEO of Gulf Energy Ltd, emphasised the company’s commitment to leveraging the assets to drive domestic energy growth.
“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.”
The transaction comes as Tullow reshapes its portfolio, having recently completed the sale of its assets in Gabon to the Gabon Oil Company for US$307 million.
The exit from Kenya is seen as a defining moment for both companies:
Tullow streamlining operations while Gulf Energy positions itself as a key player in shaping Kenya’s energy future.
With Turkana oil reserves long considered a cornerstone of Kenya’s aspirations for energy independence, the new stewardship under Gulf Energy is expected to accelerate progress toward commercial development, local job creation, and regional infrastructure growth.