Tullow Oil, an exploration company, announced on Tuesday that it has received $36 million from a Tranche B payment related to the sale of its whole Kenya position to Auron Energy E&P. This is the second instalment under the July 2025 sale agreement.
According to Tullow, the payment—the second instalment of the July 2025 sale agreement—came after the Field Development Plan for the South Lokichar project was approved by the Kenyan parliament.
The London-listed company stated that after transition support services are finished, which it anticipates before the end of March 2026, a final $4 million payment from Tranche B will be made. The SPA’s schedule will be followed for the last $40 million tranche, which will be paid over five years starting in the third quarter of 2028.
Tullow further stated that it has a no-cost-back option for a 30% ownership in any future stages of development, as well as the right to future royalties, subject to certain restrictions.
Based on $65 per barrel, Tullow reaffirmed its pre-financing cash flow forecast for FY26 of $150 million to $180 million. However, the organization predicted that pre-financing cash flow would quadruple using realized prices for January and February and assuming $100 per barrel for the remainder of the year. Tullow shares were down 9.03% at 13.10p as of 1000 GMT.