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Tullow Oil Plc, the London-listed oil and gas explorer where Gabonese-Beninese oil magnate Samuel Dossou-Aworet holds a significant stake, has completed the sale of its entire Kenya portfolio to Auron Energy E&P Ltd., an affiliate of Nairobi-based Gulf Energy Ltd., in a deal valued at least $120 million.
The handover ends Tullow’s 14-year run in Kenya and gives Gulf Energy, backed by Beninese businessman Samuel Dossou-Aworet, a central role in efforts to bring the country’s first oil production onstream.
Kenya’s long-stalled oil hopes
The deal, first announced in April, closed after regulatory and contractual approvals. Auron Energy now owns Tullow Kenya BV outright. Tullow has received $40 million, with two more payments due in 2026 and 2028, and keeps royalty rights plus a 30 percent option to rejoin later.
Gulf Energy takes charge of the South Lokichar Basin, estimated to hold 463 million barrels of recoverable oil. Development has been stalled for over a decade by pipeline costs and the exit of partners like TotalEnergies and Africa Oil.
Known mainly for fuel trading and infrastructure, Gulf Energy is making its first move into upstream oil. The company must now secure financing and manage operations to shift Lokichar from discovery to production.
What it means for Tullow and Kenya
Tullow, which has been cutting debt and reshaping its portfolio with other sales in Gabon and elsewhere, said proceeds from the Kenya exit will strengthen its balance sheet. For Kenya, the transfer to a homegrown player carries political and social weight. Local lawmakers and civil groups have pressed for transparency and insisted that any future revenues must benefit communities in Turkana County, where the reserves are located.
Gulf Energy, advised by global law firm Dentons, must now secure financing, win approval for a development plan, and possibly bring in partners. The stakes are clear: successful development could deliver jobs, infrastructure, and government revenues. But further delays risk fueling doubts over whether Kenya will ever join Africa’s oil-producing ranks.
Tullow stays active in Africa
Despite these sales, Tullow remains active in Africa, with its primary focus on producing oil fields in Ghana, and Côte d’Ivoire, alongside its discovered resources in Kenya. Dossou-Aworet, the founder of Petrolin Group, has played a key role in Africa’s oil and gas sector since 1992 building a portfolio of major energy deals across the continent. His 16.8 percent stake in Tullow—243,635,633 shares—is currently valued at $35.9 million.
For Tullow, the sale closes a difficult chapter and lets it focus on producing assets elsewhere. For Gulf Energy, it is a bold bet on local ownership and fresh investment. Whether Lokichar becomes the foundation of Kenya’s oil industry or another story of unrealized potential will depend on how quickly Gulf Energy can move from acquisition to production.
