Iranian sanctions hit work in field off UK

Recompletion of a well in Rhum gas field in the UK North Sea has been suspended because Iranian Oil Co. (UK) Ltd., a subsidiary of National Iranian Oil Co., holds a 50% interest.

Recompletion of a well in Rhum gas field in the UK North Sea has been suspended because Iranian Oil Co. (UK) Ltd., a subsidiary of National Iranian Oil Co., holds a 50% interest.

BP PLC, which is selling its interests in Rhum and two nearby gas fields to Serica Energy PLC, deferred the start of work on the R3 well, Serica said, citing the reimposition on May 8 of sanctions by the US against transactions involving the Iranian government.

Some services on Rhum field have been conducted with authorization from the US Office of Foreign Assets Control (OFAC). BP has applied to renew the authorization, which expires Sept. 30.

“The US announcement on 8 May is expected to result in a change of US policy in respect of the granting of OFAC licenses,” Serica said in a press release.

BP decided not to start work on the R3 well while a review is in progress of effects of the renewed sanctions, Serica said.

The US suspended waivers of its Iranian sanctions after withdrawing from the Joint Comprehensive Plan of Action, the multilateral agreement under which Iran agreed to suspend nuclear development.

Serica said work remains on track for its acquisition from BP a 50% interest in Rhum field, a 36% interest in Bruce field, and a 34.83% interest in Keith field (OGJ Online, Nov. 21, 2017).

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