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Tullow Oil PLC on Monday said it has agreed to terminate its rights to Kenyan royalty payments and back-right rights from the sale of Tullow Kenya BV for an extra $9 million payment. The London-based oil and gas company’s subsidiary Tullow Overseas Holdings BV signed the original deal in July 2025 with Auron Energy E&P Ltd, an affiliate of Gulf Energy Ltd. The original deal meant Tullow would receive quarterly royalty payments of $0.5 per barrel, multiplied by 80% of total production, subject to oil price, resource and production related conditions. There was also a back-in right with the option for 30% participation in potential future development phases. On Monday, Tullow said the new transaction terminates the royalty payments and back-in rights. Completion of the transaction and receipt of funds is expected by Friday. Tullow Chief Executive Officer Ian Perks said: ‘This transaction is another important step in our strategy to deliver value from our portfolio and strengthen the balance sheet. By accelerating the receipt of $9 million from the sale of the shares in Tullow Kenya BV, we are securing near-term cash proceeds and simplifying our portfolio. ‘It also demonstrates the continued momentum across the business as we deliver against our strategic priorities and maintain a disciplined approach to capital allocation.’ Shares in Tullow Oil were up 6.7% at 13.30 pence on Monday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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