Tullow Oil, the renowned British oil and gas company, is set to exit the Kenyan market after announcing plans to sell its oil assets to another company - Gulf Energy Ltd - after the stalling of Kenya's dream to join oil exporters.
The British company announced on Tuesday, April 15, that it will sell its assets for approximately Ksh16 billion (USD 120 million) in a move necessitated by Tullow Oil's need to reduce its debt.
In the new deal, Tullow is set to receive payments in instalments of Ksh5.3 billion, totalling Ksh15.9 billion.
One key benefit for the British company in the deal is it will be entitled to future payments based on royalties from oil production.
