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SSE agrees to acquire 20% of Shetland Gas Plant and associated fields

SSE plc said this morning that, through its wholly-owned subsidiary SSE E&P UK Limited, it had entered into an agreement with Total E&P UK Limited to acquire a 20 per-cent interest in the new Shetland Gas Plant and a 20 per-cent interest in the Glenlivet, Laggan, Tormore and Edradour gas fields and the surrounding exploration acreage. SSE put the cost at £565 million with an additional forecast investment of £350 million between now and 2018 to complete the entire development. The transaction will be financed by a future bond issue and by proceeds from SSE’s ongoing programme to dispose of assets to support a range of future investments. SSE said that following completion of the acquisition later in this financial year, Total E&P UK Limited would continue as operator and it would own a 60 per cent stake in the assets. The remaining 20 per cent is owned by DONG Energy. SSE said that the Shetland Gas Plant was expected to become fully operational in the course of this financial year and was expected to process and export gas and condensate for producers west of Shetland well into the 2030s. Other stories Meanwhile Total has now confirmed it intends to follow other companies, including BP and Shell, in moving to a three-week on, three week off, rota pattern for its offshore workers.   The Secretary of State for Scotland, David Mundell, has praised the work of the Our Islands Our Future campaign as an example for other parts of the UK to follow. SIBC on radio, on app, on mobile and on listen-live