RockRose Snaps Up 16 SSE's UK North Sea Assets

RockRose Snaps Up 16 SSE's UK North Sea Assets
RockRose Energy has completed the buy of a number of UK North Sea producing assets from SSE.

UK energy company Viaro Energy has, through its wholly-owned subsidiary RockRose Energy, completed the buy of a number of UK North Sea producing assets from SSE.

Viaro said that the acquisition, which was initially agreed to in December 2020, was made for a consideration of $164 million with an additional contingent payment of $54 million.

The portfolio acquired from SSE comprises non-operated interests in over 16 producing gas fields in three regions in the North Sea – the Easington Catchment Area, the Bacton Catchment Area, and the Greater Laggan Area. The new assets are expected to produce over 15,000 boepd during 2021.

As part of the transaction, SSE will continue to provide decommissioning security for the portfolio of assets it is selling and will retain an obligation to pay 60 percent of the decommissioning costs when they are incurred. In addition, no vendor financing was required for the transaction.

When the sale was first announced, it was said that SSE would be shedding the assets as part of its strategy to refocus its investment on core networks and renewables businesses, with plans to invest over $10 billion in low-carbon energy infrastructure over the next five years and to treble its renewable electricity output by 2030.

This transaction follows Viaro’s acquisition of RockRose Energy for $330 million in 2020. The company later acquired HALO’s interest in The Netherlands in May 2021.

The combined transaction established Viaro as a material producer on the UK Continental Shelf and Netherlands with an output of approximately 33,000 boepd from more than 36 producing oil and gas fields.

Also, Viaro entered into an agreement with Nederlandse Aardolie Maatschappij (NAM) in September 2021 to buy an additional 10 percent share in the F5/F4A East licenses off The Netherlands.

“I am delighted that we have concluded this transaction with SSE and taken this important next step for Viaro, as we build towards our target of producing 100,000 boepd. We are actively pursuing other opportunities and looking forward to announcing further progress in due course,” Chief Executive of Viaro Francesco Mazzagatti said.

To contact the author, email bojan.lepic@rigzone.com


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