Tullow Exits Kenya as Gulf Energy Takes Over Turkana Oil, Government Ramps Up Commercialisation
After 14 years in Kenya, British oil explorer Tullow Oil has officially exited the country, selling its entire Kenyan operations to Auron Energy E&P Limited, a subsidiary of Gulf Energy Ltd. The landmark deal, valued at US$120 million, saw Tullow receive an initial payment of US$40 million, which the company plans to use to strengthen its balance sheet. The sale transfers Tullow’s stakes in Blocks 10BB, 13T, and 10BA in Turkana to Gulf Energy, while Tullow retains royalty rights and a no-cost option to re-enter future development phases.
Tullow’s new Chief Executive, Ian Perks, described the transaction as a “significant milestone” for the company and the nation, extending best wishes to Kenya and Gulf Energy as the project moves forward. “On behalf of everyone at Tullow, we wish Gulf Energy every success as they advance this project,” Perks said, highlighting the importance of continuity in Kenya’s burgeoning oil sector.
For Gulf Energy, the acquisition represents both an opportunity and a responsibility. CEO Paul Limoh emphasized that the deal underscores the company’s commitment to strengthening Kenya’s domestic energy security. “This project will play a key role in advancing Kenya’s energy sector and creating opportunities for economic growth and development in the Turkana region,” Limoh said.
The timing of Tullow’s exit coincides with a decisive push by the Kenyan government to accelerate the commercialisation of Turkana oil. Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced a 33-member First Oil Technical, Commercial, and Legal Working Committee tasked with fast-tracking full field development, negotiating agreements with contractors, and mapping out Kenya’s first crude oil exports. The committee will also provide guidance on regulatory frameworks, land access models, and quarterly progress reports.
With Gulf Energy now at the helm, Kenya’s long-delayed Turkana oil project faces heightened expectations. The government’s increased oversight signals a national drive to ensure the country maximizes benefits from its petroleum resources, setting the stage for Kenya to potentially join Africa’s league of oil-exporting nations in the coming years.
source: kenyawallstreet