Serica Energy plc has received notification from BP that the US Office of Foreign Assets Control (“OFAC”) has issued a new licence relating to the UK North Sea Rhum Field. The licence authorises the provision of essential goods, services and support by certain US persons and businesses to the Rhum field until 4 November 2018, replacing an existing authorisation which expired on 30 September 2018.

Discussions continue with OFAC regarding the conditions under which authorisation may be given for the provision of goods, services and support to allow Rhum production to continue beyond 4 November 2018.

Mitch Flegg, Chief Executive of Serica Energy, commented:
“Serica welcomes the new licence which ensures that production from the Rhum field can continue. Discussions with OFAC and other parties regarding longer term arrangements to protect this valuable UK asset are continuing and all parties are working towards a successful conclusion. The transaction between Serica and BP under which Serica will acquire BP interests in the Bruce, Keith and Rhum fields upon receipt of the appropriate licences is an important part of this process and we are encouraged by the issuance of this interim licence. Both BP and Serica remain committed to completion.”