SSE offloads gas assets to Viaro Energy for £120mln

SSE will still have to pay 60% decommissioning costs of the portfolio

SSE PLC - SSE offloads gas assets to Viaro Energy for £120mln

SSE PLC (LON:SSE) announced it has agreed to sell all of its interests in its portfolio of gas exploration and production assets to Viaro Energy for £120mln.

The transaction is based on a 'locked box' economic date of March 2019 and is subject to regulatory approval and partner consent.

READ: SSE sells minority stake in world’s largest wind farm to Eni

The portfolio comprises non-operational equity shares in over 15 producing fields in three regions in the North Sea, where SSE will be obliged to pay 60% of the decommissioning costs.

The FTSE 100 power firm said these activities were not aligned with its strategic focus on reaching net-zero emissions.

The sale is part of SSE's strategy to refocus investment on core networks and renewables businesses, with plans to invest £7.5bn in low-carbon energy infrastructure over the next five years and to treble renewable electricity output by 2030.

The company has so far secured over £1.4bn from the disposal of non-core assets as part of its £2bn-plus disposal programme by autumn 2021, including the recent exit from the energy-from-waste venture Multifuel Energy for £995mln, the Walney Offshore Wind Farm for £350mln and the meter asset provider MapleCo for £90mln.

“This sale clearly comes at a difficult time for the E&P sector, and the economy as a whole, but we believe it is the right move for our shareholders as we focus our resources on our core low-carbon businesses,” said finance director Gregor Alexander.

Shares rose 1% to 1,475p on Tuesday afternoon.

Quick facts: SSE PLC


Price: 1634.5 GBX

Market Cap: £17.05 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


Hochschild Mining reveals 'profitable' PEA on its heavy rare earths project...

Hochschild Mining Head of Investor Relations Charles Gordon joined Proactive New York to discuss the Peru-based gold and silver miner's recent developments within its heavy rare earths project, recently renamed Aclara. Gordon says the group recently revealed a preliminary economic assessment...

2 days, 9 hours ago

2 min read