Receipt of Tranche B payment for sale of Kenya assets

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.