mburu jeff 
Richard Miller,Chief Financial Officer and Interim Chief Executive Officer of Tullow
- Tullow exits Kenya in $120M sale to Gulf Energy
Tullow Oil plc has agreed to sell its wholly-owned subsidiary, Tullow Kenya Overseas Holdings BV, to Gulf Energy for at least $120 million.
The firm said the consideration will be split into a $40 million payment due on completion, $40 million payable at the earlier of Field Development Plan (FDP) approval or 30 June 2026, and $40 million payable over five years from the third quarter of 2028 onwards.
In addition, Tullow will be entitled to royalty payments subject to certain conditions.
Tullow also said it retains a back-in right for a 30% participation in potential future development phases at no cost.
The Transaction is accretive to both equity and leverage and further accelerates Tullow’s deleveraging process.
This Transaction will constitute a significant transaction for the purposes of UKLR 7 of the UK Listing Rules (as came into effect on 29 July 2024).
Tullow said it will make announcements in due course upon full form transaction documentation being entered into by the parties.
Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow, said that the announcement marks another step forward in Tullow’s accelerated deleveraging journey with near-term cash receipts of $80 million which will mitigate significant capital exposure, while 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,” Miller said adding that,
“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.”
