EU anti-Iranian sanctions hit BP

Anti-Iranian European sanctions have begun to take their toll on the British oil giant BP as the company may have to close a North Sea gas field it jointly owns with Iran.

European Union foreign ministers have recently ratified severe sanctions, which are meant to pressure Iran through putting restrictions on its energy sector over the country’s peaceful nuclear activities.

Yet the European Union has acknowledged that the embargo which bans all European firms from entering joint ventures for exploration and production of oil and natural gas with any Iranian entity will have “consequences” for themselves too.

BP has already sought clarification from the UK government “on certain aspects of the regulations and how they apply to the BP-operated Rum field in the North Sea”.

The UK Foreign Office informed the oil giant that “it’s for BP” to decide on its next move at the gas field to “ensure compliance with the [EU] regulations”.

However, an EU spokeswoman said the impact of sanctions on the gas field can still be studied and “is not a foregone conclusion”.

The Rhum field located some 250 miles off Scotland’s northeastern coast is operated and 50% owned by BP.

Iranian Oil Company UK, which is indirectly controlled by the state-owned National Iranian Oil Company owns the remaining 50%.

Rhum gas field that accounts for 5% of BP’s overall prodution in the region was hailed when it was launched in December 2005 as one of the most important recent discoveries in the North Sea.

The EU has already said it will make the final decision on whether to shut down the field based on the block’s needs.

“There should be no effect on the security of supply,” the EU spokeswoman said.