Global Leader in International Oil and Gas Industry News

posted in:

SSE announces increase in equity holding of upstream gas assets

Wednesday, Nov 14, 2012

SSE, through its wholly-owned subsidiary SSE E&P UK Limited, has entered into an agreement with Perenco to increase its equity stake in three producing gas fields in the Southern North Sea - Apollo, Minerva and Mercury. SSE will pay a total cash consideration of US$52.75m (£33m).

SSE currently has a 35% equity interest in Apollo and Minerva, and a 26.67% equity interest in Mercury.  As a result of this deal SSE's equity interest in all three fields will increase to 50%.  Following Perenco's recent acquisition of a larger package of assets from BP in the Southern North Sea, they will hold the remaining 50% equity in the fields and become the Operator.

Net to SSE, on a proven and probable (2P) basis, the deal will increase SSE's producing gas reserves by over 200 million therms over the life of the fields.

The transaction is expected to be completed by the end of the year.

David Franklin, Managing Director Energy Portfolio Management, said:

"Our decision to increase our equity stake in Apollo, Minerva and Mercury, reflects SSE's growing confidence and expertise in owning producing gas assets. These fields have performed well since we acquired them in 2011 and in Perenco we have an experienced owner and Operator as a partner.

"SSE's upstream gas assets provide a good source of primary fuel and a hedge for our gas generation and supply activities, and we are therefore proactively seeking new opportunities to increase our presence in this sector where assets can be acquired for a fair price."

Source: SSE PLC

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Oil & Gas News

Piedmont Natural Gas announces agreement with Camp Lejeune for major expansion of natural gas facilities on base 21-04-2014
AVEVA provides Integrated Engineering & Design solutions to TOTAL E&P Nigeria Limited 18-04-2014
Oando Energy Resources increases deposit for acquisition of Nigerian Upstream Oil and Gas Business of ConocoPhillips 18-04-2014
Linde will be exclusive hydrogen supplier for the Shell Eco-marathon in Houston 18-04-2014
Technip wins Umbilical contract for Kaombo project in Angola 18-04-2014
Forest Oil announces first quarter 2014 earnings release date and teleconference 18-04-2014
Saipem announces awarded FPSO contracts in Angola worth more than $4 billion 18-04-2014
Endeavour announces settlement of SM Energy litigation 18-04-2014
Drilling and production update 18-04-2014
Shell announces Malaysia deep-water gas discovery 18-04-2014