Tullow offloads assets in Kenya after Gabon divestment, adding millions to its balance sheet

September 25, 2025, by Melisa Cavcic

UK-headquartered Tullow Oil, an independent energy company with operations in West Africa, has wrapped up the sale of its portfolio in Kenya just months after disposing of its non-core assets in Gabon. These two divestments are expected to generate multimillion-dollar cash proceeds, strengthening the firm’s balance sheet in 2025.

Following the sale and purchase agreement (SPA) from July 2025, Tullow Oil has completed the sale of its entire working interest in Kenya to Auron Energy E&P, an affiliate of Gulf Energy, after receiving the full proceeds of tranche A, amounting to $40 million, under the terms of the SPA.

This transaction represents the sale of 100% of the shares in Tullow’s subsidiary, Tullow Kenya, which holds the firm’s entire working interests in the African country, for a minimum cash consideration of $120 million, subject to customary adjustments.

The proceeds of the sale, which marks the exit from Kenya after 14 years, will be used to boost the company’s balance sheet. The firm retains royalty payments, subject to certain conditions, and a no-cost back-in right for a 30% participation in potential future development phases.

Ian Perks, Chief Executive Officer (CEO) of Tullow, commented: “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 further strengthen our balance sheet 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.”

Tullow also completed the sale of its assets in Gabon in July 2025 to the Gabon Oil Company, with the full proceeds received on completion, representing the sale of 100% of the shares in Tullow Oil Gabon for a total cash consideration of $307 million net of tax and customary adjustments.

Paul Limoh, Chief Executive Officer, Gulf Energy, noted: “We are delighted to complete this transaction and to bring these assets under the stewardship 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.”

After Tullow appointed Ian Perks as its new Chief Executive Officer, Perks took up the role of CEO and joined the board on September 15, 2025. This enabled Richard Miller, the firm’s Chief Financial Officer (CFO), who held the position of Interim CEO, to return to his role as CFO.