1st Oct 2018 12:48
LONDON (Alliance News) - Serica Energy PLC on Monday said US Office of Foreign Assets Control issued a new licence relating to the Rhum field, located in the North Sea.
The licence authorises the provision of essential goods, services and support by certain US persons and businesses to the Rhum field until November 4, replacing an existing authorisation which expired Sunday.
Discussions continue with the US Office of Foreign Assets Control regarding the conditions under which authorisation may be given for the provision of goods, services and support to allow Rhum production to continue beyond November 4.
Back in May, oil & gas giant BP PLC has stopped work on Rhum gas field, which it equally shares with the National Iranian Oil Co. The company cited the reintroduction of US sanctions against Tehran as the reason for the suspension. It agreed to sell its 50% stake in Rhum to another UK-based oil & gas company, Serica Energy.
"Serica welcomes the new licence which ensures that production from the Rhum field can continue," said Serica Chief Executive Mitch Flegg.
"Discussions with OFAC and other parties regarding longer term arrangements to protect this valuable UK asset are continuing and all parties are working towards a successful conclusion," added Flegg.
Serica shares were up 5.2% on Monday at 91.09 pence each.
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