After 14 years at the center of Kenya’s oil exploration, Tullow Oil has officially exited the country following the completion of its asset sale to Gulf Energy Limited.
In a press release issued on Friday, September 26, the British oil company confirmed receipt of the first tranche of $40 million (Ksh5.2 billion) under the terms of a Sales Purchase Agreement (SPA) with Gulf. The agreement stipulates that Tullow will receive a total of $120 million (Ksh15.5 billion) for 100 percent of its working interests in Kenya. The second installment of Ksh5 billion is expected by June 2026 or upon government approval of the Field Development Plan (FDP), while the third installment, to be paid between 2028 and 2033, will depend largely on global oil prices.
The SPA also grants Tullow the right to retain royalty payments under certain conditions and a no-cost option to re-enter the project with a 30 percent stake should a third party join later.
According to Tullow Kenya Managing Director Madhan Srinivasan, proceeds from the sale will help reduce the company’s debt and strengthen its financial position. He praised Gulf Energy as “a capable Kenyan company” that would lead the country into becoming an oil producer.
Tullow entered Kenya in 2011, following the discovery of oil in Lokichar, Turkana, with the ambition of transforming the country into an oil exporter. However, progress stalled due to a lack of infrastructure, particularly the absence of a pipeline to transport oil to the coast. A past plan to link Kenya’s pipeline with South Sudan’s output also failed.
The exit marks the end of Tullow’s decade-long quest to develop Turkana’s oil reserves, leaving Gulf Energy to steer Kenya’s long-awaited journey toward first oil production.
