British Petroleum (BP) on Tuesday announced pulling out of the work on a gas field it co-owns with a subsidiary of the Iranian government’s oil company, in deference to renewed US sanctions imposed by President Donald Trump, The national reported.
BP said it will continue work at the Rhum gas field, located in the North Sea, 240 miles north-east of Aberdeen, Scotland, under 350 ft of water. But it is postponing work on a new well that was going to be drilled, until it becomes clear if the project complies with the new US sanctions.
“BP has decided to defer some planned work on the Rhum gas field in the North Sea while we seek clarity on the potential impact on the field of recent US government decisions regarding Iran; Rhum is co-owned by an Iranian company,” a BP spokesperson said in a statement to The National, adding, “BP always complies with applicable sanctions”.
Meanwhile, BP has concluded an agreement for 20 years of an annual supply of 2 million tons of liquefied natural gas (LNG) by the US company Venture Global Calcasieu Pass. Under the agreement, BP will purchase LNG on FOB terms (Free on Board) since the start of operation of the export gas terminal Venture Global Calcasieu Pass in the town of Cameron Parrish (Louisiana) on the shores of the Gulf of Mexico.
According to the US Department of Energy, LNG exports in 2017 increased almost fourfold – to 1.94 billion cubic feet per day. Which explains why BP would agree to drop the Iranian partnership in order to comply with US sanctions.