BP halts work on Iranian-owned field as US sanctions loom

BP has delayed its plans to drill a fresh well at one of its North Sea gas fields due to concerns that its Iranian partner could put the oil major in breach of looming US sanctions. BP was due to begin new work at the Rhum field but the oil major said it will wait for clarity on the US sanctions before moving ahead. The BP-operated field is part owned by an Iranian state-backed oil company, which has also delayed BP's plans to sell its stake in the field to Serica Energy as part of a package of assets worth £300m. BP said that the field's usual operations and production have not been affected because BP has secured authorisation from the US Office of Foreign Assets Control (Ofac) to run the field until September 2018. BP has applied for an extension to this agreement and In the coming weeks will meet with Ofac to strike an extension deal, he added.