By Adam Whittaker

Tullow Oil said it agreed to sell its Kenyan assets to Gulf Energy for a minimum of $120 million in cash with the potential for additional royalty payments.

The oil-and-gas producer said Tuesday that it agreed terms to sell Tullow Kenya--which houses the entirety of its assets and interests in Kenya--to the Kenyan energy and infrastructure group for a near-term cash payment of $80 million with an additional payment due over several years.

Tullow will receive $40 million upon completion of the deal with an additional $40 million payable upon approval of the Field Development plan, or if sooner, on June 30, 2026. An additional $40 million will then be payable over five years from the third quarter of 2028 onward, the company said.

In addition, Tullow said it is entitled to royalty payments subject to certain conditions and retains an option for a 30% share of future developments at no cost.

The deal is subject to regulatory approvals, it added.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

April 15, 2025 05:15 ET (09:15 GMT)

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