UK-based Tullow Oil has announced plans to sell its Kenyan assets to Gulf Energy Ltd for at least $120 million. The deal includes three payments of $40 million, future royalty earnings, and a 30% cost-free participation stake in potential future developments.
This move is part of Tullow’s strategy to reduce its net debt, which stands at approximately $1.5 billion. Despite owning the Lokichar oilfield solely since May 2023, after former partners TotalEnergies and Africa Oil Corp exited, the assets have been underutilized due to the high cost of building a necessary export pipeline.
Tullow previously wrote off $145 million on its Kenyan operations and recently sold its working interests in Gabon for $300 million. As of April 15, 2025, the company’s market capitalization stood at about $255 million.
This sale is a big step in Tullow’s efforts to streamline operations and focus on more profitable ventures.
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