Ateker TV 
Tullow Oil Plc has agreed to sell its full stake in Tullow Oil Kenya BV to Gulf Energy for Ksh 15.5 billion ($120 million) in a structured payment plan. The two companies have signed a preliminary agreement, with the payment divided into three installments to be completed by 2028.
Under the terms, Tullow will receive 40 million upon finalizing the deal, another 40 million by June 2026 (or earlier, pending Field Development Plan approval), and the final $40 million in quarterly payments starting from Q3 2028.
Richard Miller, Tullow’s CFO and Interim CEO, stated that this sale advances the company’s debt reduction strategy, providing 80 million in near−term cash flow while minimizing capital risks.
He noted that the proceeds, along with the 300 million from Tullow’s recent Gabon asset sale, strengthen the company’s refinancing prospects.
“Today’s announcement marks another step forward in Tullow’s accelerated deleveraging journey with near-term cash receipts of $80 million and mitigating significant capital exposure, whilst retaining a material option on the future development of the project. I am confident that the proceeds from this transaction, coupled with the $300 million from the disposal of our assets in Gabon, position the business strongly for a successful refinancing,” said Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow.
Tullow will retain a 30% back-in right (before government participation) in future development phases at no additional cost. Miller expressed confidence in Gulf Energy’s financial capability, stating the deal would unlock significant value for Kenya.
“We look forward to working with Gulf Energy, who have the requisite financing to complete the transaction and are a strong and credible counterparty, and by doing so, unlock material value for the people of Kenya,” added Miller.
The first payment is expected later this year after finalizing the purchase agreement in the coming months.
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