Under his leadership, Tullow has also halved its next debt to $1.4 billion (Sh181.3 billion at current exchange rates).
Rahul Dhir will step down as the Chief Executive Officer of Tullow Oil Plc, ending his four-year stay at the helm of the company.
The British oil exploration firm on Thursday disclosed Mr Dhir’s looming exit, adding that the departure will allow him to pursue undisclosed family, business and education interests.
Mr Dhir has been the CEO of Tullow Oil since 2020, with the board lauding his efforts in helping the firm generate $1.1 billion (Sh142.45 billion at current exchange rates) that has been used to pay creditors and dividends.
Under his leadership, Tullow has also halved its next debt to $1.4 billion (Sh181.3 billion at current exchange rates).
“Since joining in 2020, Rahul has led a comprehensive turn-around and strategic reset of Tullow, focussed on the delivery of operational and financial performance, debt reduction and positioning the company for future growth,” said Phuthuma Nhleko, the non-executive Chairman of the Tullow board.
However, it is not clear which month Mr Dhir will exit the company, with the board adding that it is already in the process of identifying his successor.
Tullow has several projects across different countries, including Kenya where the company has been struggling to ink a deal with a strategic investor to help it commercialise the oil reserves in South Lokichar.
"It has been a privilege to serve Tullow during these past four and a half years. During this period, we have achieved a step change in our operating performance, cost structure and capital discipline and delivered over $1.1 billion in free cash flow and reduced our net debt from $2.8 billion to $1.4 billion,” Mr Dhir said.
All eyes will be on how Mr Dhir’s successor will approach some of the firm’s projects like the South Lokichar basin in Turkana County.
Africa Oil and Total, the joint partners in the South Lokichar project, exited the project last year amid concerns over its commercial viability.
Tullow is working collaboratively with the government of Kenya to get approval for the Full Field Development Plan (FDP) of the South Lokichar oil fields, even as discussions with potential strategic partners continue.
The Kenyan government early this year flagged gaps in Tullow’s FDP, forcing the company to change it and resubmit it for a final decision.
Commercially viable oil reserves in Turkana were discovered in 2012 but delays in submission and approval of Tullow’s FDP, uncertainty on getting a strategic investor, and last year’s exits by Africa Oil and Total have delayed the project.
