Kenyan lawmakers have raised concerns over the lack of transparency in Tullow Oil’s $120 million sale of its oil assets to Nairobi-based Gulf Energy. The National Assembly’s energy committee noted that the deal lacks sufficient detail, sparking worries about the governance, continuity, and future direction of Kenya’s emerging oil industry. Tullow’s divestment is part of its broader strategy to reduce debt below $1 billion.
Kenyan lawmakers expressed concern over the lack of clarity surrounding Tullow Oil’s exit from its oil project, warning of possible negative effects on the country’s commercial oil prospects and the delayed approval of the Field Development Plan. Gulf Energy, the buyer, is involved in oil supply, power generation, and infrastructure but has not commented on the deal. Tullow stated that the transaction is progressing well, with $80 million in payments expected in 2025. The Field Development Plan remains a hurdle, compounded by the 2023 exit of joint venture partners TotalEnergies and Africa Oil Corp., leaving Tullow without a replacement strategic partner.
Ashley Kelty, an analyst at Panmure Liberum, noted that while the payment structure of the Gulf Energy deal is relatively manageable, there remains uncertainty about the company’s financial backing.
