British oil exploration company Tullow Oil has officially ended its operations in Kenya after 14 years, selling all its assets to Gulf Energy in a deal worth USD 120 million (approx. Ksh.16 billion).
The transaction gives Gulf Energy full control of the Turkana oil project, a move expected to breathe new life into Kenya’s dream of becoming an oil-producing nation.
Tullow confirmed it has already received the first payment of USD 40 million (about Ksh.5 billion). Although it has exited day-to-day operations, the company will continue to benefit from royalties on future oil production and retains the right to buy back up to a 30% stake in the future.
This exit closes a significant chapter for Tullow, which first entered Kenya in 2010 in partnership with Africa Oil and Centric Energy, securing five onshore licenses. In 2012, the company made history with Kenya’s first-ever confirmed oil discovery at Ngamia-1 well in Turkana, sparking nationwide excitement.
However, progress toward large-scale production slowed due to lack of infrastructure, regulatory hurdles, and financing delays. Matters worsened in 2023 when Tullow’s partners, TotalEnergies and Africa Oil, pulled out of the project, leaving Tullow to fund operations alone.
Speaking after the deal, Gulf Energy CEO Paul Limoh said the acquisition is a “game changer” that will boost Kenya’s energy security and revive hopes of finally exporting oil.
On his part, Tullow Kenya Managing Director, Madhan Srinivasan, said proceeds from the sale will go toward stabilizing Tullow’s balance sheet and strengthening the company’s global operations.
Kenya now looks to Gulf Energy to deliver on the long-delayed promise of turning Turkana’s oil reserves into commercial production, potentially unlocking billions in revenue and creating jobs for the local community.
