SSE buys Hess assets for $423m

1st Apr 2010 07:30

Scottish and Southern Energy (SSE) has agreed to buy the natural gas assets and infrastructure assets of Hess in three regions of the North Sea for $423m.The deal is subject to the receipt of all necessary partner and regulatory approvals. The total gas and liquid resources which SSE is acquiring total around 383 billion cubic feet (bcf) or 64 million barrels of oil equivalent (mmboe). The headline transaction price for these resources is $6.6/barrels of oil equivalent (boe) or $1.1/million cubic feet (mcf). SSE said less certain resources of gas may also be identified through further exploration. The main production asset operators are BG Group, BP and Perenco. "This timely acquisition will enable SSE to enter the upstream gas sector in a measured way by buying proven and geographically diverse production assets," said chief executive Ian Marchant."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 - production, transmission, storage, distribution and supply." Yesterday, SSE announced that its renewable energy development division secured a £400m loan facility from the European Investment Bank (EIB) to help finance the development of renewable energy schemes in the UK and Ireland.