Energy giant SSE has agreed to pay $288 million to snap up equity in a North Sea gas field from BP.
The Perth-based firm announced it was seeking buy a 50% share in the Sean field, in the southern North Sea off Norfolk, with the deal expected to go through early next year.
It would give the company access to a proven and probable gas resource of around 1.7 billion therms equivalent to around 50,000GW of power over the life of the deposit.
SSE said the move was part of its effort to take control of upstream gas assets. Prices in the wholesale energy markets remain inflated and continue to fluctuate.
Managing director of the group’s wholly-owned Energy Portfolio Management subsidiary David Franklin said: “We have made clear that SSE is proactively seeking new opportunities to increase our presence in the upstream gas sector where assets can be acquired for a fair price, and that is exactly what this deal represents.”
The trade valued at around £177m remains subject to the usual partner and regulatory approvals, but is based on an effective date of January 1this year.
SSE said it was “possible” more gas could be found in the area, which lies about 60 miles north-east of Bacton gas terminal, if infill drilling was successful.
BP said the sale was part of its strategic decision to market stakes in non-operated North Sea assets.
It is in the throes of a massive asset disposal programme, aimed at streamlining its portfolio and raising funds in the aftermath of the 2010 Deepwater Horizon disaster in the Gulf of Mexico. The company received a record fine of $4.5bn from US authorities for its failings after the explosion and subsequent oil spill.
“The divestment of BP’s interest in the non-core, non-operated Sean field is consistent with our strategy of focusing on high-value assets with long-term growth potential,” said BP regional president for the group’s North Sea operations Trevor Garlick.
In the last two weeks BP also completed the sale of non-operating stakes in the Alba and Britannia fields to Mitsui, and the Draugen field in Norway to Shell.
The Sean gas field is operated by Shell, who own the remainder of the equity in the project. Net production is around 18,000 barrels of oil equivalent per day.