Tullow Oil announced that it will sell its Kenyan assets to Gulf Energy Ltd. for at least $120 million as part of efforts to cut its debt.
The company will receive three payments of $40 million, along with royalty entitlements and the option to participate in future development phases with a 30% stake at no additional cost, according to its statement.
Tullow has not fully developed its Kenyan oilfields due to the need for a heated pipeline stretching hundreds of miles to the coast to enable exports.
Last year, Tullow wrote off $145 million on these operations.
In May 2023, Tullow took full ownership of the Lokichar oilfield after TotalEnergies and Africa Oil Corp. exited the project, while sale talks with Indian state-owned firms failed to yield a deal.
Last month, the company agreed to sell its Gabon interests for $300 million in cash.
At the end of last year, Tullow reported net debt of around $1.5 billion.
The company currently holds a market value of about $255 million.
source:www.reuters.com
