The future of a UK North Sea gas field still remains uncertain some two years after sanctions against Iran forced its closure, and the loss of tens of millions of pounds of revenue for BP.
Rhum, developed in a joint venture between BP and the Iranian Oil Company, was shut in November 2010 because of EU sanctions against Iran over its nuclear programme.
Sanctions against the “rogue state” have escalated this year to include oil and gas exports to Europe plus a ban on transactions with banks and restrictions on trade, making resumption of production soon on Rhum unlikely.
This could put any future production of the 80million barrel of oil equivalent (boe) field in permanent jeopardy because it is produced from the Bruce field: thought to only have five years’ life left without the output from Rhum coming back on stream. It could even put strain on the ability to keep the high-pressure, high-temperature field shut in and maintained because of concerns workers’ contracts could breach sanctions.
A spokesman for BP said: “As operator, our priorities are twofold: to ensure the field remains safely suspended and that we remain compliant with the law.”
The Department of Energy and Climate Change said it did not comment on individual contracts, but a Foreign and Commonwealth Office spokesman said: “The UK has been at the forefront in maintaining pressure on Iran through the EU oil embargo. The EU keeps its sanctions against Iran under constant review and discussion. As part of that, we are working with our European partners on technical changes that will ensure the long-term security of the Rhum North Sea gas field.”
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