SSE has agreed to sell its portfolio of natural gas exploration and production assets to Viaro Energy, via its subsidiary RockRose Energy, for £120 million pounds ($161 million).
The transaction is subject to regulatory approval and partner consent, the company said.
Subscribe to our daily newsletter
Why? Free to subscribe, no paywall, daily business news digest.
The portfolio comprises non-operational equity shares in more than 15 producing fields in three regions in the North Sea: the Easington Catchment Area, the Bacton Catchment Area, and the Greater Laggan Area.
As part of the transaction, SSE will retain an obligation to pay 60% of the decommissioning costs, payable as the decommissioning of assets occurs, the company said.
Gregor Alexander, SSE finance director, said: “We have said for some time that gas exploration and production assets are inconsistent with our future ambitions and vision to be a leading energy company in a net-zero world.
“This sale clearly comes at a difficult time for the E&P sector, and the economy as a whole, but we believe it is the right move for our shareholders as we focus our resources on our core low-carbon businesses.”
SSE plans to refocus its investments on its networks and renewables businesses, with plans to invest £7.5 billion pounds in low-carbon energy infrastructure over the next five years and to treble its renewable electricity output by 2030.
