COPENHAGEN - Danish state-controlled oil and gas group DONG Energy said it signed a deal to sell 25.1 percent of its Walney offshore wind farm to Scottish and Southern Energy.

SSE will pay up to around 39 million pounds ($62.5 million) for the stake in the 367 megawatt farm in the Irish Sea, of which around 17 million pounds is subject to operational performance, the Danish utility said in a statement on Wednesday.

SSE will pay a pro rata share of construction costs, said DONG Energy, which will keep the remaining 74.9 percent stake.

DONG Energy expects the cost of constructing Walney to total just under 1 billion pounds ($1.6 billion). The wind farm is expected to enter commercial operation in two phases in 2011.

(Reporting by Anna Ringstrom; editing by John Stonestreet)