Kenya’s long journey to becoming an oil-producing nation has entered a new chapter after British oil explorer Tullow Oil officially handed over its Kenyan business to Gulf Energy, a homegrown company.

The deal, worth at least $ 120 million (Ksh15.6 billion), has raised fresh hopes that the country’s first oil production could finally take off after more than a decade of delays.

Tullow announced that it had received $ 40 million (Ksh 5.3 billion) as the initial payment under the sale agreement signed in July of this year. The transaction involved the sale of Tullow’s entire Kenyan interests through its subsidiary, Tullow Kenya BV.

For many, the handover marks a symbolic moment in Kenya’s energy history as the project shifts from a foreign multinational to a local player.

“After 14 years in Kenya, Tullow leaves behind strong assets, and we are delighted to pass the baton to Gulf Energy, a capable Kenyan company, in the lead up to first oil, making Kenya an oil-producing country,” Tullow Kenya BV Managing Director Madhan Srinivasan said.

He thanked the Kenyan government and agencies such as the Energy and Petroleum Regulatory Authority and the Turkana County Government for their support since Tullow’s arrival in 2011.

The move has been welcomed by many who believe Gulf Energy, being a Kenyan company, may move more decisively to unlock the country’s oil potential.

Gulf Energy Chief Executive Officer Paul Limoh said the company is determined to deliver on the promise of turning Kenya into an oil producer.

“We are delighted to complete this transaction and to bring these assets under the stewardship of Gulf Energy Ltd. This project will play a crucial role in advancing Kenya’s domestic energy sector, creating opportunities for growth and development in the Turkana region, while also supporting the country’s long-term energy security,” Limoh said.

Tullow CEO Ian Perks called the deal a key milestone for the company and part of its strategy to improve its finances.

“The successful completion of this transaction marks a significant milestone for the company and the achievement of another one of our key 2025 strategic priorities. The use of proceeds helps to further strengthen our balance sheet,” Perks said. “On behalf of everyone at Tullow, I extend our best wishes to the people and Government of Kenya and wish Gulf Energy every success as they advance this project.”

Kenya discovered oil in Turkana in 2012, sparking hopes of a new economic boom. However, challenges including financing, infrastructure delays, and shifting global oil prices have slowed progress.