Tullow Oil banks $36m tranche from Kenya exit deal.
Exploration firm Tullow Oil said on Tuesday that it has received $36m from a Tranche B payment linked to the sale of its entire Kenya position to Auron Energy E&P, the second instalment under the July 2025 sale agreement.
Source: Sharecast
Tullow said the payment, which was second instalment under the July 2025 sale agreement, followed Kenyan parliamentary ratification of the Field Development Plan for the South Lokichar project.
The London-listed firm noted that a remaining $4m payment from Tranche B will be paid once transition‑support services have been completed, which it expects before the end of March 2026. The final tranche of $40m, payable over five years from the third quarter of 2028,will follow the schedule set out in the SPA.
Tullow added that it also retains rights to future royalty payments, subject to conditions, and holds a no‑cost back‑in option for a 30% stake in any future development phases.
Tullow reiterated its FY26 pre‑financing cash flow guidance of $150m to $180m, based on $65 a barrel. However, using realised prices for January and February and assuming $100 barrel for the rest of the year, the group said pre‑financing cash flow would double.
As of 1000 GMT, Tullow shares were down 9.03% at 13.10p.
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