UK Reopens Rhum Gas Field

The UK government will co-manage the Rhum gas field in the North Sea starting 22 October 2013, allowing the operations to move forward that were stopped in 2010 in relation to European sanctions against Iran.

Ownership of Rhum field, which produces 4% of the UK-made gas, is shared equally between BP and the Iranian Oil Company (IOC). The British government will place IOC’s share of the revenues in a frozen account.  

‘The government supports restarting production at Rhum, which is necessary to avoid potential environmental damage and to prevent the possible destruction of the value of the field,’ reads a note published on Tuesday by the British Energy Ministry. 

According to Reuters, the Rhum gas field started pumping gas in December 2005 and cost 350 million pounds ($565.6 million) to build. 

The Energy Ministry specified that the temporary administration would continue ‘until the expiry of the licence in March 2018 of if circumstances change.’ International sanctions on Iranian companies were imposed and reinforced in the last seven years on suspicion of an Iranian nuclear program.