Tullow Oil plc has received $36 million as the second instalment from the sale of its entire working interest in Kenya’s South Lokichar oil project to Auron Energy E&P Limited, an affiliate of Gulf Energy Limited.
The sale, first announced on 21 July 2025, represented a major step in Tullow’s plan to monetise its East African assets while retaining strategic participation rights in future developments.
The latest payment follows ratification by the Kenyan Parliament of the Field Development Plan for the project, clearing a crucial regulatory step that enabled the release of funds. The remaining 10% of Tranche B, equivalent to $4 million, is expected once Tullow completes transition support services, projected to conclude before the end of March 2026.
Under the terms of the Sale and Purchase Agreement, a final tranche of $40 million is scheduled for disbursement over five years, beginning in the third quarter of 2028 and no later than 30 June 2033.
In addition, Tullow retains royalty rights, subject to conditions, and a no-cost back-in option allowing a 30% stake in potential future development phases, keeping a window open for further involvement in Kenya’s oil sector.
The company noted that its 2026 pre-financing cash flow guidance of $150–180 million, initially based on oil prices of $65 per barrel, could double if realised prices maintain an average of $100 per barrel for the remainder of the year, reflecting the impact of recent global oil market trends.
Tullow, an independent energy company with core operations in Ghana, has been positioning itself to deliver sustainable growth while adhering to environmental and social commitments. The Kenyan sale aligns with its broader strategy to focus on high-value assets and ensure financial flexibility across its portfolio.
For Tullow, the deal not only unlocks immediate cash flow but also preserves potential upside through royalties and participation rights in future phases of the South Lokichar development.
