THE unexpected complication North Sea-focused Serica is facing in its expansion drive provides a reminder that geopolitical factors can create challenges for any firm in what is a global oil and gas industry.
Serica, a relatively small firm based in London, wants to buy BP’s 50 per cent interest in the Rhum field East of Shetland.
But with the remaining 50% interest in the field owned by the Iranian Oil Company UK, the deal may be regarded with concern in the US.
The American authorities could make life difficult for any firms that have dealings with Iran amid the sanctions President Trump has said the country should face.
Both Serica and BP will be very keen for the deal to go through. Serica reckons it could generate good returns on its investment in Rhum and the two other fields the planned acquisition covers. BP stands to receive £300m including an agreed share of future profits on production.
Champions of the UK North Sea will be glad that such complications are relatively rare in the area.
The Iranian Oil Company UK website lists two assets including Rhum and an exploration block held with BP.
The political stability of the UK has been cited as one of the factors that have encouraged many overseas firms to invest in the North Sea.
The latest UK Licensing round attracted strong interest.
The fallout from the tensions between the US and Iran will be monitored closely in the North Sea, however.
The increase in the oil price to a three year high of above $80 last week was at least partly driven by expectations that exports from Iran will fall as a result of US sanctions.
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