BP gets temporary license for Rhum field

The U.S. Office of Foreign Assets Control (OFAC) has issued a new license to BP related to continuing operations on the Rhum field in the UK North Sea.

Serica Energy, which is in process of buying BP’s interests in the Bruce, Keith, and Rhum (BKR) fields, said on Monday that BP had received a new license relating to the Rhum field.

The license authorizes the provision of essential goods, services and support by certain U.S. persons and businesses to the Rhum field until November 4, 2018, replacing an existing authorization which expired on September 30, 2018.

Serica added that discussions continue with OFAC regarding the conditions under which authorization may be given for the provision of goods, services and support to allow Rhum production to continue beyond November 4.

BP and Serica earlier in September decided to postpone the completion of acquisition of BP’s interest in BKR fields to enable the completion of regulatory processes extending the completion timetable until early November 2018.

Meanwhile, Serica has already said it will be ready to assume operatorship once the outstanding conditions have been met.

Mitch Flegg, Chief Executive of Serica Energy, commented: “Serica welcomes the new license which ensures that production from the Rhum field can continue. 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.

“The transaction between Serica and BP under which Serica will acquire BP interests in the Bruce, Keith and Rhum fields upon receipt of the appropriate licenses is an important part of this process and we are encouraged by the issuance of this interim license. Both BP and Serica remain committed to completion.”