IN BRIEF: Tullow Oil seals $120 million deal for Kenya assets sale

Tullow Oil PLC - oil and gas producer in West African countries of Ghana and Ivory Coast - Signs agreement for sale of its Kenyan assets to Gulf Energy Ltd for a minimum of $120 million in cash. The disposal was first agreed back in April. The portfolio of all of Tullow’s assets in Kenya have a total of 463 million barrels of best estimate contingent resources. Tullow will receive $40 million upon completion, $40 million by June next year, and $40 million over five years from the third quarter of 2028. Tullow also may receive royalty payments. It has a back-in right for a 30% participation in potential future developments. The deal remains conditional on approval by the Competition Authority of Kenya.

Tullow said the cash will be used to reduce debt. ‘We continue to advance plans to optimise our capital structure during 2025,’ says Richard Miller, interim chief executive officer. ‘Coupled with the sale of our Gabonese assets, the disposal of these non-core assets is expected to provide cash proceeds of $380 million in 2025.’ In March, Tullow sold all of its assets in Gabon to Gabon Oil Co for $300 million in cash.

Current stock price: 15.60 pence for £228.3 million market capitalisation

12-month change: down 51%

Copyright 2025 Alliance News Ltd. All Rights Reserved.