(Alliance News) - Oil & gas producer Serica Energy PLC on Thursday said it has secured a licence renewal and assurance from the US Treasury Department at its 50%-owned Rhum field in the North Sea.
Serica said the licence and secondary sanctions assurance from the US Office of Foreign Assets Control means operations and production at Rhum can continue unaffected.
Serica said: "The license and assurance will allow certain US and US-owned or controlled entities and also non-US entities to continue providing goods, services and support to Rhum beyond October 31; when the current licence expires."
Previously, the government department's licences would be valid for a period of one year, in this case however, the extension runs until February 28. The previous licence was due to expire on October 31.
The licences are necessary as Serica jointly operates the Rhum field with Iranian Oil Co, with Iranian companies currently under sanction by the US.
Serica Chief Executive Mitch Flegg said: "In production terms during the second quarter of 2019, Rhum was the third largest gas field on the UK Continental Shelf. The receipt of the renewed and extended License and assurance is an excellent outcome which protects this valuable British asset. Serica appreciates the support of the UK Oil and Gas Authority and the relevant departments of the UK Government for its application."
The company's shares were 4.9% higher at 139.96 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Serica Energy (SQZ)