US clears Serica’s plans for fields off UK

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 Company holds a 50% interest through a subsidiary.

The development allows Serica to proceed with acquisitions which will make it operator of Rhum, Bruce, and Keith gas and condensate fields.

Because of the interest held by Iranian Oil Company (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 licence and assurance.

The licence 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 licence and assurance allows Serica also to proceed with its agreed acquisition of Total’s non-operated 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.

Source: Oil & Gas Journal