Kerogen invests $100m in MBO of Tullow Oil Norge

The business will form part of the new Oslo-headquartered Pandion Energy Group, which was established in November 2016 in order to complete the Tullow acquisition. Oil & gas specialist Kerogen will take a majority stake in Pandion as part of the deal, with management retaining the balance.

The funding will enable Pandion, which focuses on the Norwegian Continental Shelf, to pursue acquisitions, farm-ins and licences. Kerogen may commit a total of $300m to Pandion through potential follow-on rounds, the GP said in a statement, mirroring a similar strategy pursued with portfolio company Hurricane Energy.

Kerogen's investment in Pandion comes three months after the GP took part in a £74m funding round for Hurricane, in which it previously acquired a 29.9% stake for £44m in April 2016.

The Pandion deal is subject to approval from the Norwegian Ministry of Petroleum and Energy.

The sale of Tullow's Norwegian business is part of the group's wider strategy to shift its geographic focus away from the North Sea. Throughout 2016, it sold four licences in the region to Statoil and eight to Aker BP.

Company
Founded in 2016, Oslo-headquartered Pandion is an oil & gas exploration business that will focus on the Norwegian Continental Shelf. The business holds a 20% interest in the Cara oil field in the North Sea, discovered in September 2016.

People
Kerogen Capital – Jason Chen (co-founder, CEO).
Pandion Energy Group – Jan Christian Ellefsen (CEO).

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