BP got U.S. license last year to operate North Sea gas field with Iran

|About: BP p.l.c. (BP)|By:, SA News Editor

BP (BP +1%) and Iran's state-run oil company received a license from the U.S. government last year to operate their joint gas field in the North Sea following the lifting of Western sanctions, BP says in its annual report.

Production at the Rhum field was suspended in 2010 when Europe imposed sanctions on Iran and resumed four years later after the U.K. agreed to set up a temporary arrangement where all revenue due to Iran would be held until sanctions were lifted; the temporary scheme ceased when the EU and UN removed sanctions in January 2016.

BP recorded a $31.6M net profit in 2016 from its 50% stake in the Rhum field, which supplies ~4% of U.K. gas demand.