Kenya’s Gulf Energy will pay Tullow Oil $9 million (Sh1.16 billion) for the British firm to give up rights to future royalties of $0.5 (Sh65) per barrel and repurchase of shares in the Turkana oil project.
Tullow states in new filings at the London Stock Exchange (LSE) that it has agreed to an additional payment of Sh1.16 billion in exchange for the rights that would have enabled it to bank future millions in royalties once the Kenyan crude oil project reaches full production.
