Acquisition of Upstream Gas A

RNS Number : 5742A

Scottish & Southern Energy PLC

02 February 2011

 



SCOTTISH AND SOUTHERN ENERGY PLC

ACQUISITION OF UPSTREAM GAS ASSETS

SSE (Scottish and Southern Energy plc) has completed the acquisition from Hess Limited, of North Sea natural gas and infrastructure assets.  Natural gas reserves totalling around 300 billion 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 be around 200 million therms in 2011 and, subject to the phasing of development fields, could reach up to 300 million therms in 2012, which will provide around 6% of SSE's gas needs.  Production is then forecast to decline over the next 10 years.

The total cash consideration for the acquisition is $324million.

Alistair Phillips-Davies, Energy Supply Director of SSE, 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." 

 

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