Scottish utility to buy N. Sea gas interests

Scottish & Southern Energy PLC, a gas and electricity utility based in Perth, Scotland, has agreed to buy natural gas and pipeline interests in the central and southern UK North Sea from Hess Corp.

By OGJ editors
HOUSTON, Apr. 6
-- Scottish & Southern Energy PLC, a gas and electricity utility based in Perth, Scotland, has agreed to buy natural gas and pipeline interests in the central and southern UK North Sea from Hess Corp.

Through a subsidiary, SSE E&P UK Ltd., the utility will pay $423 million for Hess production interests in the Everest-Lomond area, Easington Catchment area, and Bacton area. The deal also includes a 17.7% equity interest in the BP PLC-operated Central Area Transmission System, centered on a 400-km pipeline between the central North Sea and a processing terminal at Teesside, UK.

Main operators of the production covered by the transaction are BG Group, BP, and Perenco.

SSE will acquire 383 bcf of gas reserves.

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