BP Gets Five-Week US Waiver for UK Field

AIM-listed independent Serica said October 1 it has been told by BP that the US Office of Foreign Assets Control (Ofac) has issued a new licence relating to the Rhum gasfield in the UK sector of the North Sea.

The licence however authorises the provision of essential goods, services and support by certain US persons and businesses to the  field until November 4 2018 only, thus replacing an existing authorisation that expired September 30 2018. Serica said that discussions continue with Ofac regarding the conditions under which such a US waiver may be provided in order for Rhum gas production to continue beyond November 4 2018.

A US waiver to enable the Rhum field to produce is needed, as the 50% equity stake not held by BP belongs to Iranian state NIOC.

Serica CEO Mitch Flegg acknowledged that receipt of such a long-term US waiver was necessary in order for Serica to complete a related $400mn (£300mn) acquisition from BP: "The transaction between Serica and BP under which Serica will acquire BP interests in the Bruce, Keith and Rhum fields [BKR] upon receipt of the appropriate licences is an important part of this process and we are encouraged by the issuance of this interim licence. Both BP and Serica remain committed to completion."