SSE has also subscribed in a placing for just over 5% of the enlarged share capital of Faroe Petroleum at a cost of around £18m.
The company is working towards final completion on the acquisition of its first North Sea gas production assets from Hess later this year.
The new SSE/Faroe partnership is currently working on a number of opportunities to acquire upstream production.
SSE energy supply director Alistair Phillips-Davies said that SSE’s goal is to build up a presence in the upstream gas sector in a measured way to provide an additional source of primary fuel and a hedge for its gas generation and supply activities.
"This agreement with Faroe Petroleum, which has a strong track record and team, should help us to achieve that over the medium term," Phillips-Davies said.
