SSE buys North Sea assets for £200m

Scottish and Southern Energy has spent almost £200m to buy North Sea natural gas and infrastructure assets from global exploration and production firm Hess. Natural gas reserves totalling around 300bn […]

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By Kelvin Ross

Scottish and Southern Energy has spent almost £200m to buy North Sea natural gas and infrastructure assets from global exploration and production firm Hess.

Natural gas reserves totalling around 300bn cubic feet have been acquired and additional, less certain resources of gas may also be identified through further exploration.

Gas production from these assets is expected to provide around 6% of SSE’s gas needs.

The total cash consideration for the deal is £199m.

SSE’s energy supply director Alistair Phillips-Davies said: “I am pleased that the past year has seen SSE take important first steps into the upstream gas sector, with this acquisition and with our agreement with Faroe.While we hope to build our presence in the sector over time, we will do so in a careful, measured way and only where fair value can be secured.”

Hess is headquartered in New York with bases in London, Kuala Lumpur and Houston.