Gas production from these assets is forecast to be in excess of 200 million therms (mth) in 2010, rising to about 300mth in 2012, which will provide approximately 6% of SSE’s needs.
A revised cash consideration of $324m will be paid for these assets subject to further partner and regulatory approvals before completion later this year.
Alistair Phillips-Davies, energy supply director of SSE, said: “It was to be expected that some of Hess’ existing partners would exercise their pre-emption rights, but we are very pleased with the assets which we can now go ahead and acquire.
“For a fair price, we will secure a new source of primary fuel and a hedge for our gas generation and supply activities, taking a very useful first step into the upstream gas sector.”
In early April, SSE entered into an agreement with Hess to acquire its natural gas assets and infrastructure in three regions of the North Sea for $423m.
The assets subjected to pre-emption were primarily Everest, Lomond, Neptune and the CATS pipeline.
