22nd Jul 2025 06:59
Tullow Oil PLC - oil and gas producer in West African countries of Ghana and Ivory Coast - Signs agreement for sale of its Kenyan assets to Gulf Energy Ltd for a minimum of USD120 million in cash. The disposal was first agreed back in April. The portfolio of all of Tullow's assets in Kenya have a total of 463 million barrels of best estimate contingent resources. Tullow will receive USD40 million upon completion, USD40 million by June next year, and USD40 million over five years from the third quarter of 2028. Tullow also may receive royalty payments. It has a back-in right for a 30% participation in potential future developments. The deal remains conditional on approval by the Competition Authority of Kenya.
Tullow said the cash will be used to reduce debt. "We continue to advance plans to optimise our capital structure during 2025," says Richard Miller, interim chief executive officer. "Coupled with the sale of our Gabonese assets, the disposal of these non-core assets is expected to provide cash proceeds of USD380 million in 2025." In March, Tullow sold all of its assets in Gabon to Gabon Oil Co for USD300 million in cash.
Current stock price: 15.60 pence for GBP228.3 million market capitalisation
12-month change: down 51%
By Tom Waite, Alliance News editor
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