SSE buys North Sea gas assets
Friday 02 April 2010
Scottish & Southern Energy (SSE) is buying North Sea gas assets from New York-based Hess for $423m (£278m) in cash.
The acquisition will provide around 8 per cent of the company's daily requirement of 1300 million cubic feet (mcf) of gas, although the proportion is expected to decline over the coming decade, the company said yesterday.
The deal includes assets in the Everest/Lomond, Easington Catchment and Bacton regions of the North Sea, with total resources of 64 million barrels of oil equivalent (boe). SSE says further gas may yet be discovered in the areas.
Alongside the upstream assets, SSE is also buying a 17.7 per cent stake in the BP-operated Central Area Transmission System pipeline through which more than 10 per cent of the UK's gas is pumped 250 miles from the North Sea to a processing terminal in Teesside.
The Hess deal is SSE's first move into the ownership of gas fields. "This timely acquisition will enable SSE to enter the upstream gas sector in a measured way by buying proven and geographically diverse production assets," Ian Marchant, the chief executive, said. "These assets will provide a new source of primary fuel and a hedge for our gas generation and supply activities. The acquisition will also give us involvement throughout the gas chain."
SSE is not the only energy retailer to be expanding into upstream resources. Last year Centrica fought for months to take over Venture Production, in line with its strategy to build up its own supplies and insulate the group from increasingly volatile wholesale gas prices. The purchase boosted Centrica's reserves by 50 per cent, and the group also spent £3bn buying a 20 per cent stake in British Energy.
- 1 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 This crazy skiing video will leave you feeling queasy
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Mother of newborn Baby No 59 trapped in sewer pipe told Chinese police she 'heard crying' when she raised alarm
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
AirAsia QZ8501: Black box reveals warning alarms 'screamed' before crash, as more bodies recovered from near fuselage of jet
Rob Lowe hits out at White House decision not to meet Israeli leader
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...