Tullow Oil, a UK-based oil and gas exploration firm, has agreed to sell all its operating interests in Kenya to Gulf Energy Ltd. for a minimum of $120 million.

This agreement entails three payments of $40 million each: the first is payable upon project completion, the second upon approval of the Field Development Plan or by June 30, 2026, and the third is due five years after the third quarter of 2028.

Tullow is entitled to a 30% cost-free participation in future development stages and will collect royalties under certain conditions.

The objective of this transaction is to assist Tullow in reducing its net debt, which was around $1.5 billion at the conclusion of the previous year.

The substantial cost of building a crucial export route to the coast has hindered the company from fully using its assets in Kenya, particularly the Lokichar oilfield.

Tullow sold its interests in Gabon for $300 million and already wrote down $145 million from its operations in Kenya. On April 15, 2025, Tullow’s market worth was around $255 million.