Serica Energy, BP Receive License, Assurance From OFAC
October 09 2018 - 2:56AM
Dow Jones News
By Oliver Griffin
Shares in Serica Energy PLC (SQZ.LN) soared Tuesday after it
said that it and BP PLC (BP.LN) have received a conditional license
and assurance from the U.S. Office of Foreign Assets Control
relating to the Rhum field in the North Sea.
The oil-and-gas company bought assets from BP, including a 50%
stake in the Rhum field, last November for up to 52 million pounds
($68 million) as part of a reverse takeover. However, the co-owner
of the Rhum field is Iranian Oil Company (U.K.) Ltd, a subsidiary
of the Iranian state oil company, which could have opened up the
possibility of companies working on the field being hit by U.S.
sanctions.
With the conditional license and assurance from OFAC--the body
that controls sanctions--the company's wholly owned subsidiary,
Serica Energy (UK) Ltd., and BP will be allowed to receive goods,
services and support from certain U.S. and U.S.-owned entities.
OFAC has also provided an assurance that non-U.S. entities
providing goods, services and support involving the Rhum field
won't be hit by secondary sanctions, Serica Energy said.
Serica Energy said the agreement with OFAC is conditional on
arrangements being put in place by Nov. 4 so that all of the
benefits from Iranian Oil Company's interest in the Rhum field will
be held in escrow while U.S. sanctions apply.
The arrangements, which are at an advanced stage, ensure that
neither the Iranian-owned company nor any of its direct or indirect
parent companies will derive economic benefit from the Rhum field
during that period, Serica Energy said.
Serica Energy shares at 0723 GMT were up 30% at 100 pence.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
October 09, 2018 03:41 ET (07:41 GMT)
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