Kenya’s Energy Crossroads: Gulf Energy Takes Over Tullow Oil in Turkana’s Geothermal-Rich Fields

Gulf Energy Takes Over Tullow Oil’s Turkana Fields – Oil Drilling to Overlap a Geothermal Hotspot

In a landmark energy shift for Kenya, British explorer Tullow Oil has officially exited the country after 14 years, selling its Turkana operations to Gulf Energy in a deal worth Ksh.16 billion (USD 120 million). The transition marks the end of Tullow's chapter in Kenya and the beginning of a new phase that could reshape not only oil production but geothermal exploration as well.

The takeover grants Gulf Energy full control of the Turkana oil project, situated in a geologically active zone that also happens to host significant geothermal potential. Beneath Turkana’s arid landscapes, volcanic systems create natural heat reservoirs turning the region into a rare frontier where oil and geothermal energy converge.

Tullow Oil first entered Kenya in 2010, striking the Ngamia-1 discovery well in 2012, which ignited hopes of the country becoming an oil producer. Yet, infrastructure bottlenecks, regulatory hurdles, and financing challenges kept large-scale production out of reach. With partners Total Energies and Africa Oil pulling out in 2023, Tullow was left stranded making this exit almost inevitable.

For Kenya, however, Gulf's Energy arrival is a fresh opportunity. The company’s CEO, Paul Limoh, has framed the acquisition as a “major boost for Kenya’s energy ambitions,” emphasizing that it will not only accelerate oil development but could also strengthen national energy security if geothermal synergies are tapped.

The oil blocks sit within a geothermal-rich corridor in Turkana, opening up a potential dual-resource strategy: extracting hydrocarbons while also harnessing clean, baseload geothermal power. This layered energy mix could reduce reliance on imports, lower costs for future oil operations, and transform Turkana into a hybrid hub of renewable and non-renewable energy.

Tullow, meanwhile, departs with the first installment of USD 40 million (about Ksh.5 billion), while retaining the right to royalties and even an option to rejoin the project later with up to a 30% stake.

What lies ahead for Turkana is no longer just an oil story it’s a crossroads of fossil fuel ambitions and geothermal promise. With Gulf Energy now steering the wheel, the big question remains: will Kenya finally strike its first commercial oil and in the process, unlock geothermal energy that has quietly simmered beneath Turkana’s soil for centuries?

Source: Citizen Digital

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