Gulf Energy clears $30.8 million payment to Tullow, takes helm of Kenya’s oilfields

Gulf Energy, the Nairobi-based energy group backed by Gabonese-Beninese billionaire Samuel Dossou-Aworet, has completed a Ksh4.67 billion($30.8 million) payment to Tullow Kenya BV, resolving months of delays linked to the commercialisation plan for the Turkana oilfields.

The transaction clears part of the $40 million second instalment, with the remaining Ksh518.6 million ($4 million) scheduled for transfer upon final operational handover next week.

Homegrown ownership in Kenya’s oil sector
The payment finalizes Tullow Oil Plc’s exit from Kenya after 14 years, transferring its entire portfolio to Auron Energy E&P Ltd., an affiliate of Gulf Energy, in a deal valued at $120 million. 

The acquisition gives Gulf Energy full control over the South Lokichar Basin, estimated to hold 463 million barrels of recoverable oil, and positions the company at the forefront of Kenya’s long-delayed push toward first oil production.

Gulf Energy, traditionally known for fuel trading and infrastructure, is making its upstream debut with this acquisition. The company must now secure financing, gain regulatory approvals, and implement a development plan to move Lokichar from discovery to production. Success could generate jobs, infrastructure, and government revenues, while delays risk further skepticism over Kenya’s oil ambitions.

Strategic impact for Tullow and Kenya
For Tullow, the sale strengthens its balance sheet, allowing the London-listed explorer to focus on producing assets in Ghana and Côte d’Ivoire. The company retains royalty rights and a 30% option to re-enter the Kenyan projects. Dossou-Aworet, founder of Petrolin Group and a 16.8% Tullow shareholder, has been instrumental in shaping Africa’s energy landscape since 1992, with his 243.6 million shares currently valued at $35.9 million.

For Kenya, the transfer marks a politically and socially significant milestone, aligning with local calls for transparency and ensuring that future oil revenues benefit Turkana communities. The deal also underscores a shift toward local ownership in the country’s nascent oil industry, giving Gulf Energy both responsibility and opportunity to deliver on decades of unrealized potential.

The next phase for Gulf Energy will test its capacity to turn acquisition into production, setting the tone for Kenya’s first commercial oil output and defining the future of the Lokichar Basin.