Scottish utility to buy N. Sea gas interests

By OGJ editors
HOUSTON, Apr. 6 -- Scottish & Southern Energy PLC, a gas and electricity utility based in Perth, Scotland, has agreed to buy natural gas and pipeline interests in the central and southern UK North Sea from Hess Corp.

Through a subsidiary, SSE E&P UK Ltd., the utility will pay $423 million for Hess production interests in the Everest-Lomond area, Easington Catchment area, and Bacton area. The deal also includes a 17.7% equity interest in the BP PLC-operated Central Area Transmission System, centered on a 400-km pipeline between the central North Sea and a processing terminal at Teesside, UK.

Main operators of the production covered by the transaction are BG Group, BP, and Perenco.

SSE will acquire 383 bcf of gas reserves.