Scottish and Southern Energy has taken a further step in its bid to become a player in the UK oil and gas sector.
The company has signed a deal with independent oil and gas outfit Faroe Petroleum to identify, assess and acquire oil and gas assets in the North Sea.
SSE has almost clinched its first foothold in the market. It expects to complete the acquisition of its first North Sea gas production assets from Hess later this year.
SSE energy supply director Alistair Phillips-Davies said: “Our goal is to build up a presence in the upstream gas sector in a measured way to provide an additional source of primary fuel and a hedge for our gas generation and supply activities. This agreement with Faroe Petroleum, which has a strong track record and team, should help us to achieve that over the medium term.”
Faroe’s chief executive Graham Stewart believes the SSE deal “is an important step forward for Faroe”.
“The partnership’s combined expertise and relationships across the market, provide a unique opportunity to acquire high quality oil and gas production and benefiting from respective strengths.”
Faroe Petroleum is an independent oil and gas firm targeting the Faroe Islands, the UK West of Shetlands, North Sea andNorway.
SSE became the first UK utility company to raise consumer gas prices this year, with a 9% increase.