SSE plc, through it's wholly-owned subsidiary SSE E&P UK Limited, has completed the acquisition announced on 29 July 2015 of a 20% interest in the four gas fields and surrounding exploration acreage approximately 125km north west of the Shetland Islands, collectively known as the Greater Laggan Area, along with a 20% interest in the new Shetland Gas Plant, from Total E&P UK Limited.
The transaction has been closed for a total consideration of £565 million (US$872.3 million). SSE will also invest £350 million (US$540.3 million) in the period to 2018 to complete the entire development.
Total E&P UK Limited will continue as operator of, and will own a 60% stake in, these assets. The remaining 20% is owned by DONG Energy.
The new Shetland Gas Plant is located close to Sullom Voe and will process and export produced gas and condensate from developments in the west of Shetland for onward delivery to the St Fergus Gas Terminal, making it one of the most important infrastructure developments in the UK. It is expected to become fully operational in the course of this financial year and is expected to process and export gas and condensate for producers west of Shetland well into the 2030s.
SSE now estimates it will hold reserves and resources of over six billion therms or over 100 million barrels of oil equivalent over the life of all of the fields in which it has an ownership interest.