From Yahoo Finance: 2025-04-16 11:01:00

Tullow Oil has agreed to sell its Kenyan subsidiary, Tullow Kenya, to Gulf Energy for a minimum of $120m. The deal includes an initial payment of $40m, with additional payments due by 2026 and 2028. Tullow retains a royalty and back-in option, accelerating its deleveraging efforts.

The transaction with Gulf Energy is classified as a significant deal under UK Listing Rules. Interim CEO and CFO Richard Miller sees it as a step forward in Tullow’s deleveraging journey, providing near-term cash receipts and reducing capital exposure. The sale of Gabon assets for $300m further strengthens Tullow’s financial position.

The deal includes Tullow’s Gabonese assets, expected to produce 10,000 barrels of oil per day by 2025. Tullow’s agreement to divest its Kenyan and Gabon assets aligns with its strategic focus on deleveraging and unlocking value for shareholders. This move positions Tullow for a successful refinancing and future growth opportunities.

Read more: Tullow Oil agrees preliminary terms for $120m Kenyan asset sale