Serica Energy PLC and BP PLC have received a conditional license and assurance from the US Office of Foreign Assets Control allowing work to continue at Rhum gas field in the UK North Sea although National Iranian Oil Co. holds a 50% interest through a subsidiary (OGJ Online, May 23, 2018).
The development allows Serica to proceed with acquisitions that will make it operator of Rhum, Bruce, and Keith gas and condensate fields.
Because of the interest held by Iranian Oil Co. (UK) Ltd., Rhum operations fell under question when the US withdrew from the Joint Cooperative Plan of Action on Iranian nuclear development last May and reimposed sanctions.
The sale to Serica of BP’s interests in Rhum, Bruce, and Keith gas and condensate fields, announced in November 2017, was conditional on receipt of the license and assurance (OGJ Online, Nov. 21, 2017).
The license allows US and US-owned or controlled entities to provide goods, services, and support to Rhum. The assurance is that entities providing goods, services, and support will not be exposed to US secondary sanctions.
Benefits related to Iranian Oil’s interest must be held in escrow while sanctions remain in effect against Iran.
Receipt of the license and assurance allows Serica also to proceed with its agreed acquisition of Total’s nonoperated interests in Bruce and Keith fields. BP and Total will retain a 1% interest each in Bruce field.
Serica’s interests after the transactions will be Rhum, 50%; Bruce, 78.25%; and Keith, 59.83%. It will operate all three.