Tullow Oil has completed the sale of its entire Kenyan business to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, sealing its exit from the country after 14 years.
The British oil explorer announced it had received the first tranche of US$40 million from the US$120 million deal, with proceeds earmarked to strengthen its balance sheet.The sale transfers Tullow’s entire stake in Tullow Kenya BV, which holds working interests in Blocks 10BB, 13T and 10BA in Turkana, to Gulf Energy. Tullow retains royalty rights and a no-cost option to buy back into future phases of development.The parallel developments, Tullow’s exit and the formation of the committee — mark a turning point for Kenya’s quest to join Africa’s league of oil exporters.
Ian Perks, Tullow’s new chief executive, described the transaction as “a significant milestone,” adding: “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.”
Gulf Energy CEO Paul Limoh said the deal underlined the firm’s commitment to local energy security: “This project will play an important role in advancing Kenya’s domestic energy sector, creating opportunities for growth and development in the Turkana region.”
The exit comes just as the government moves to accelerate commercialisation of the Turkana oil discoveries. Energy and Petroleum Cabinet Secretary Opiyo Wandayi has unveiled a 33-member First Oil Technical, Commercial and Legal Working Committee.
The taskforce is mandated to fast-track full field development, negotiate agreements between the government and contractors, and prepare a roadmap for Kenya’s first crude oil exports. It will also advise on policy and regulatory frameworks, recommend land access models for oil infrastructure, and file quarterly progress reports.
“The committee will safeguard Kenya’s interests while ensuring the country moves towards unlocking its petroleum resources,” Mr Wandayi said while announcing the appointments.
Gulf Energy now carries the burden of delivering the long-delayed Turkana project, with government oversight expected to intensify as the country eyes first oil in the coming years.