The Lower Eastern Times Opening The Third Eye
Related Articles
Auron Energy E&P Limited, a company linked to Gulf Energy in Kenya, is set to acquire Tullow Oil’s Kenyan operations following the signing of a sale and purchase agreement.
Click here to join our WhatsApp Channel
The agreement, signed with Tullow Overseas Holdings BV — the parent company of Tullow’s local unit — is worth $120 million (approximately Sh15.5 billion).
The payment will be made in three phases: $40 million will be paid upon deal completion, another $40 million will be due either when the Field Development Plan (FDP) is approved or by June 30, 2026 (whichever comes first), and the final $40 million is scheduled for 2028.
Tullow’s Chief Financial Officer and Acting CEO, Richard Miller, said the agreement is a key step in the company’s efforts to strengthen its financial position.
“This $120 million deal moves us closer to finalizing the transaction with Gulf Energy. We expect to receive $80 million before year-end, helping us meet our strategic goal of improving the balance sheet,” he stated.
Miller also highlighted that Tullow has retained the right to participate in future development phases at no additional cost, calling it a “potentially significant value option.”
He added that the company is working on restructuring its finances in 2025, and alongside the sale of its Gabon operations, expects to raise a total of $380 million from these non-core asset disposals.
