SSE sells its North Sea portfolio of natural gas exploration and production for £120 million

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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.

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.

 

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