Judul : Tullow Oil signs $120m Kenyan assets sale deal to Gulf Energy
link : Tullow Oil signs $120m Kenyan assets sale deal to Gulf Energy
Tullow Oil signs $120m Kenyan assets sale deal to Gulf Energy
Tullow Oil Plc has signed a sale and purchase agreement with Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd, to divest its entire interest in Kenya for a minimum cash consideration of $120 million. The deal, which marks an exit of the London-based firm from the country, was executed through Tullow Overseas Holdings BV, a wholly owned subsidiary of Tullow Oil Plc.
Gulf Energy will act as guarantor for Auron Energy, while Tullow will guarantee the seller’s obligations.“We are pleased to announce the signing of the Kenyan SPA (sale and purchase agreement), marking another step closer to completion of the transaction with Gulf Energy. For a total consideration of at least $120 million, the transaction supports our strategic priority to strengthen the balance sheet, with the first two payments totalling $80 million expected before the end of the year,” said Richard Miller, Tullow's chief financial officer and interim chief executive officer.
The transaction involves the transfer of 100 percent of the shares in Tullow Kenya BV, the entity that holds all of Tullow’s Kenyan assets. These assets include approximately 463 million barrels of potential oil reserves.
The deal will be split into a $40 million payment due on completion, $40 million payable at the earlier of Field Development Plan (FDP) approval or June 30, 2026, and $40 million payable over five years from the third quarter of 2028 onwards.
An FDP outlines how an oil company intends to develop a petroleum field, manage the impact on the environment and society, as well as give forecasts for production and costs.“In addition, Tullow will be entitled to royalty payments, subject to certain conditions. Tullow also retains a no-cost back-in right for a 30 percent participation in potential future development phases. This right can be exercised if a third-party investor participates in future development phases, whether through a sale or farm-down of the purchaser’s interest in the assets,” Tullow said.
In addition to transferring the assets, Auron Energy will assume all past and future decommissioning responsibilities and material environmental liabilities associated with the Kenyan operations, except for a single outstanding community petition, which remains Tullow’s responsibility.
The completion of the deal is subject to the approval of the Competition Authority of Kenya, and the successful physical and functional separation of Tullow Kenya from the wider Tullow group.
Tullow expects the deal to be finalised later in 2025, with the first payment received upon closing and subsequent payments aligned with key project milestones.
Tullow began exploring for oil in Kenya in 2010, having partnered with Africa Oil and Centric Energy to acquire interests in five onshore licences. Their first significant exploratory drilling occurred in early 2012, culminating in the discovery of oil at the Ngamia-1 well in Turkana County. This marked Kenya’s first confirmed oil find. These early efforts put Kenya on the path towards becoming an oil-producing nation.
The delays in full-scale production stemmed from a combination of infrastructure, regulatory, and financial challenges. In 2023, the withdrawal of Tullow’s joint venture partners, TotalEnergies and Africa Oil, left it as the sole operator and funder of the project, increasing financial pressure. Provided by SyndiGate Media Inc. (Syndigate.info).Demikianlah Artikel Tullow Oil signs $120m Kenyan assets sale deal to Gulf Energy
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