British oil explorer Tullow Oil has officially left Kenya after selling all its local operations to Gulf Energy in a deal worth at least USD 120 million, or about Ksh.16 billion.
The transaction hands Gulf Energy full control of the Turkana oil project, raising hopes that Kenya could finally move closer to producing its first oil.
Tullow Oil has confirmed receiving the first payment of USD 40 million (approx. Ksh.5 billion) from the sale.
The transaction transfers all of Tullow’s interests in Kenya, though the company will still be entitled to earn royalties from future oil production, and also retains the option to rejoin at a later stage with up to a 30 percent stake.
This marks the close of a 14-year chapter for Tullow in Kenya. The company entered the market in 2010, joining forces with Africa Oil and Centric Energy to secure five onshore licenses.
Two years later, it struck Kenya’s first confirmed oil discovery at the Ngamia-1 well in Turkana, a find that raised national hopes of becoming an oil-producing country.
Progress toward large-scale production, however, stalled due to infrastructure, regulatory, and financing challenges.
Matters worsened in 2023 when Tullow’s partners, TotalEnergies and Africa Oil, exited the project, leaving the company to shoulder costs alone.
Gulf Energy CEO Paul Limoh has called the acquisition a major boost for Kenya’s energy ambitions, saying it would strengthen the country’s energy security.
On his part, Tullow Kenya Managing Director, Madhan Srinivasan says that funds from the sale will be directed toward stabilizing the company’s balance sheet.
By Jasmine Wambui
