Kenya lawmakers said a lack of detail over Tullow Oil Plc’s sale of oil assets to local company Gulf Energy “raises concerns” for the industry in the East African nation.
Tullow ended a decade-long quest to develop discoveries in April, when it sold the inland fields for $120 million to Gulf Energy, a Nairobi-based oil and gas trader. Tullow has announced divestments in recent months toward reducing its debt below $1 billion this year.
The deal for the assets has included few details, “which raises concerns about the continuity, governance, and strategic direction of the country’s nascent oil industry,” the national assembly energy committee said in a report tabled on Wednesday.
“There is limited information regarding the terms of the exit, the implications of the transaction on Kenya’s commercial oil prospects, and its potential impact on the completion and timely approval of the Field Development Plan,” it said.
Gulf Energy is an oil supplier, electricity generator and infrastructure developer, according to its website. It didn’t immediately respond to emails seeking comment.
The sale of working interests in Kenya to Gulf Energy “continues to progress well,” a Tullow spokesperson said in a reply to questions. “We have a high level of confidence in it completing with the receipt of the first two payments totaling $80 million expected during 2025.”
Passage of the development plan, which is still pending, became one of the obstacles Tullow faced with the project. Partners TotalEnergies SE and Africa Oil Corp. exited the joint venture in 2023 and the company failed to find a strategic partner to replace them.
The payment profile of the Gulf Energy deal “isn’t too demanding,” though it’s unclear who is backing the company, said Ashley Kelty, an analyst at Panmure Liberum.
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