Private-equity firm Kerogen Capital has sold Zennor Petroleum Ltd. to HitecVision AS and its British unit NEO Energy Upstream UK Ltd. for about $625 million, including deferred and contingent payments, the company said on March 8.

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 bbl/d of oil 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-focused private equity fund with offices in Hong Kong and London and with around $2 billion under management, bought Zennor in 2015.

Last month, NEO Energy also agreed to acquire some of Exxon Mobil Corp.’s U.K. North Sea upstream assets in a deal potentially worth up to $1.3 billion.

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