Energy firm Gulf Energy has confirmed its readiness to purchase the complete assets of Tullow oil in East African country of Kenya in a $120 million deal.
As per the agreement, Gulf Energy will pay an initial $40 million upon completion of the deal. A further $40 million is to be paid after the approval of the Field Development Plan or by June 30, 2026.
The remaining $40 million will be paid over five years, starting in the third quarter of 2028.
Both parties aim to finalise a Sale and Purchase Agreement in the coming months, with the first payment expected in 2025.
Richard Miller, the CEO and Interim CEO of Tullow Oil, mentioned that the transaction, alongside the $300 million raised from the sale of their Gabon assets, will strengthen the company’s position for future refinancing.
He also noted that Gulf Energy’s financing capabilities make them a strong and reliable counterparty in the deal.
“We look forward to working with Gulf Energy, who have the requisite financing to complete the transaction and are a strong and credible counterparty, and by doing so, unlock material value for the people of Kenya,” Miller stated.
The acquisition will allow Gulf Energy to expand its footprint in Kenya, a country with growing energy needs, and further develop its resources in East Africa.
Both companies are expected to work closely to ensure a smooth transition of operations, with plans to enhance production and contribute to the country’s energy development.
