(Reuters) – Private-equity firm Kerogen Capital has sold Zennor Petroleum Limited to HitecVision AS and its British unit NEO Energy Upstream UK Limited for about $625 million, including deferred and contingent payments, the company said on Monday.
Zennor’s team will join NEO after the transaction, according to Kerogen’s statement.
Kerogen’s North Sea business Zennor holds stakes in the Mungo & Monan, Britannia, Bacchus and Cormorant East producing fields, and a 100% operated interest in its Finlaggan development project. The company expects net production to exceed 20,000 barrels of oil per day in the last quarter of 2021.
Reuters had reported in 2019 about Kerogen seeking bids for Zennor, estimating the company worth around $750 million or $500 million.
Kerogen, an oil and gas focussed private equity fund with offices in Hong Kong and London and with around $2 billion under management, bought Zennor in 2015.
(This story refiles to remove extraneous word in second paragraph)
(Reporting by Juby Babu in Bengaluru; Editing by Toby Chopra)