Tullow Oil agrees USD9 million fee to terminate Kenyan royalty rights
Tullow Oil PLC on Monday said it has agreed to terminate its rights to Kenyan royalty payments and back-right rights from the sale of Tullow Kenya BV for an extra USD9 million payment.
The London-based oil and gas company's subsidiary Tullow Overseas Holdings BV signed the original deal in July 2025 with Auron Energy E&P Ltd, an affiliate of Gulf Energy Ltd.
The original deal meant Tullow would receive quarterly royalty payments of USD0.5 per barrel, multiplied by 80% of total production, subject to oil price, resource and production related conditions.
There was also a back-in right with the option for 30% participation in potential future development phases.
On Monday, Tullow said the new transaction terminates the royalty payments and back-in rights.
Completion of the transaction and receipt of funds is expected by Friday.
Tullow Chief Executive Officer Ian Perks said: "This transaction is another important step in our strategy to deliver value from our portfolio and strengthen the balance sheet. By accelerating the receipt of USD9 million from the sale of the shares in Tullow Kenya BV, we are securing near-term cash proceeds and simplifying our portfolio.
"It also demonstrates the continued momentum across the business as we deliver against our strategic priorities and maintain a disciplined approach to capital allocation."
Shares in Tullow Oil were up 6.7% at 13.30 pence on Monday afternoon in London.
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