Tuesday 8 October 2013

Recent thaw in US-Iran relations could free up production in Iran, reboot Rhum field

Recent thaw in US-Iran relations could free up production in Iran, reboot Rhum field:

"As Western powers prepare to negotiate with Iran this month in Geneva, energy companies are watching closely for signs of a diplomatic breakthrough that could free up production in the petroleum-rich country.

The recent thaw in U.S.-Iranian relations -- culminating in President Obama's historic phone call with Iranian President Hassan Rouhani late last month -- isn't likely to ease oil and gas sanctions barring a radical shift from Tehran over its contentious nuclear program.

But the possibility of reconciliation has calmed oil futures and could even help reboot a shut-down BP PLC gas field shared 50-50 with a National Iranian Oil Co. subsidiary in the North Sea.

BP's Rhum field, capable of producing 200 million cubic feet of gas per day, was closed in 2010 as tougher sanctions on Iran threw the site into legal limbo.

If output starts again, the field could meet about 4 percent of the United Kingdom's daily gas consumption, based on 2012 data from the U.K. Department of Energy and Climate Change."

'via Blog this'

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