Receipt of Tranche B payment for Kenya assets sale

Summary by AI ^BETAClose X

Tullow Oil plc has received a $36 million Tranche B payment for the sale of its Kenya assets, with a further $4 million expected by the end of March 2026, pending transition services completion. The company also retains rights to future royalty payments and a back-in option for a 30% stake in potential developments. Separately, Tullow has updated its 2026 pre-financing cash flow guidance, which could double to $300-360 million if oil prices average $100 per barrel for the remainder of the year, compared to the initial guidance of $150-180 million at $65 per barrel.

Disclaimer*

Tullow Oil PLC

09 March 2026

Tullow Oil plc

Receipt of Tranche B payment for sale of Kenya assets

9 March 2026 - Tullow Oil plc (Tullow) is pleased to announce it has received $36 million proceeds of the Tranche B payment, under the terms of the Sale and Purchase Agreement (SPA) announced on 21 July 2025 for the sale of its entire working interest in Kenya to Auron Energy E&P Limited, an affiliate of Gulf Energy Limited. This is the second instalment of proceeds from the Kenya disposal and follows ratification by the Kenyan Parliament of the Field Development Plan for the South Lokichar oil project.

The final 10% of Tranche B proceeds ($4 million) is pending completion of transition support services, which is expected before the end of March 2026.

The final tranche of $40 million, payable over five years from the third quarter of 2028 onwards and no later than 30 June 2033, is subject to the payment schedule as agreed under the terms of the SPA. In addition, Tullow retains a right to royalty payments, subject to certain conditions, and a no cost back-in right for a 30% participation in potential future development phases.

Oil price update

Tullow's 2026 pre-financing cash flow guidance of $150-180 million was issued at $65/bbl. Based on realised oil prices in January and February, and an average oil price of $100/bbl for the remainder of 2026, pre-financing cash flow guidance would double.

CONTACTS

Tullow Investor Relations

ir@tullowoil.com

Matthew Evans

Camarco (Media)
(+44 20 3757 4980)

Billy Clegg

Georgia Edmonds

Rebecca Waterworth

Notes to editors

Tullow is an independent energy company that is building a better future through responsible oil and gas development in Africa. Tullow's operations are focused on its core producing assets in Ghana. Tullow is committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030, with a Shared Prosperity strategy that delivers lasting socio-economic benefits for its host nations. The Group is quoted on the London and Ghanaian stock exchanges (symbol: TLW). For further information, please refer to: www.tullowoil.com.

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