US Renews UK Gasfield Waiver: Update

(adds details at end on Iranian funds from overseas projects)

North Sea-focused Serica Energy has confirmed receiving a renewed waiver from US sanctions for its Rhum gas field, where it is partnered with the Iranian Oil Company. It will allow operations and production from the Rhum field to continue unaffected, Serica said.

The new licence, replacing one that will expire on October 31, “will allow certain US and US-owned or controlled entities and also non-US entities to continue providing goods, services and support to Rhum,” Serica said in a statement on October 24.

While previous licences have been for one year only, this one is valid until February 28 2021, Serica said.

Rhum is the third biggest gas producer on the UK shelf, accounting for 5% of national production. Serica bought its 50% stake in Rhum and shares in other near gas projects through a series of acquisitions deals late last year with BHP Billiton, BP, France’s Total and Japan’s Marubeni.

“The receipt of the renewed licence and assurance is an excellent outcome which protects this valuable British asset,” Serica CEO Mitch Flegg said. “Serica appreciates the support of the UK Oil and Gas Authority (OGA) and the relevant departments of the UK government for its application.”

BP, the former owner of Serica's share in Rhum, has told NGW that all Iran's revenues from the field are deposited in a bank account in London, where they are arrested under sanctions. The US has also granted a waiver to the Shah Deniz gas field in Azerbaijan, where Iran's Naftiran Intertrade Company (NICO) has a 10% stake. Its revenues from this project are held in a bank account in the Cayman Islands and Iran is similarly blocked from accessing them.