NAIROBI, Kenya Apr 15 – Tullow Oil plc has signed a heads of terms agreement to sell its entire Kenyan portfolio to Gulf Energy Ltd for at least $120 million. The transaction, executed through its subsidiary Tullow Overseas Holdings BV, transfers Tullow Kenya BV—holder of all Tullow’s working interests in the country.

The deal includes $80 million in near-term cash payments: $40 million upon completion and another $40 million by June 2026 or upon Field Development Plan (FDP) approval, whichever comes first. An additional $40 million will be paid in quarterly instalments from 2028 through 2033, subject to oil price conditions.

Tullow retains an option to re-enter future development phases with a 30% stake at no cost and is entitled to royalties depending on oil production and price levels.

The transaction, subject to regulatory approvals and final documentation, marks a significant milestone in Tullow’s debt reduction strategy. It also transfers all past and future liabilities to Gulf Energy, a leading Kenyan energy and infrastructure firm.

Interim CEO Richard Miller hailed the agreement as a “step forward” in deleveraging, noting the combined proceeds from the Kenya deal and the $300 million Gabon asset sale will support refinancing efforts.

Completion and the first tranche of payment are expected later in 2025.