British Petroleum and Iran's state-run oil company received a license from the US Treasury last year to operate joint gas field in the North Sea following the lifting of Western sanctions on Tehran, BP announced on Thursday.
Production at the Rhum field was suspended in 2010 when Europe imposed sanctions on Iran over its nuclear program and only resumed four years later after Britain agreed to set up a temporary management scheme whereby all revenues due to Tehran would be held until sanctions were lifted, Reuters reported.
Following the removal of European Union and United Nations sanctions on Iran in January 2016, the temporary management scheme ceased.
Iran regained control of its stake and on September 29, 2016 BP obtained a license from the US Treasury, through its sanctions enforcement arm — the Office of Foreign Asset Control (OFAC) — to continue operations at the field, BP said in its 2016 annual report.
BP, which was founded more than a century ago as the Anglo-Persian oil company, has multiple business operations in the United States and therefore needs an OFAC license to avoid potential breaches of existing US sanctions.
Last year BP created an executive committee to explore business in Iran, which would exclude its American chief executive Bob Dudley in a bid to avoid potential sanctions violations.
London-based BP recorded a net profit of $31.6 million in 2016 from its 50 percent stake in the field, which supplies around four percent of Britain's gas demand.
"BP currently intends to continue to hold its ownership stake in the Rhum joint arrangement and act as operator," it said in the annual report.
BP did not specify for how long the Rhum field license was valid.
Previous US president Barack Obama tried to encourage non-US companies and non-US banks to increase trade with Iran, although Tehran said Washington did not do enough to ease its access to international financial markets and banks for vital capital after years of sanctions.
Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear program.
Iran needs foreign investment for repairs and upgrading its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.
In November 2016, France's Total became the first oil major to sign a big deal with Tehran since the lifting of sanctions and agreed to help it develop the world's largest gas field, South Pars.
Shell signed a provisional deal in December to develop Iranian oil and gas fields South Azadegan, Yadavaran and Kish in December 2016.
Iran has named 29 companies from more than a dozen countries as being allowed to bid for oil and gas projects using the new, less restrictive contract model.
The firms include Shell, France's Total, Italy's Eni, Malaysia's Petronas and Russia's Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries.
Russia's Zarubezhneft signed an MoU for a feasibility study on two joint fields in the west of the country.
Norway's International Aker Solutions Company signed an MoU to modernize Iran's oil industry.
Austria's OMV signed in May an MoU for projects located in the Zagros area in western Iran and the Fars field in the south.
South Korean Daewoo Engineering and Construction (Daewoo E&C) signed an MoU to construct an oil refinery in Bandar Jask, on the southern coast of Iran.
Italy's Saipem signed MoUs to cooperate on pipeline projects, upgrading of refineries and development of Tous gas field in the northeastern province of Khorasan Razavi.
Norwegian oil and gas company DNO said it was the second Western energy company after Total to sign a deal with Iran under which it agreed to study the development of the Changuleh oilfield in western Iran.
Lukoil, Russia's second biggest oil producer, hopes to reach a decision on developing two new oilfields in Iran.
Germany's Siemens AG signed an MoU in May to overhaul equipment and facilities at Iran's oil operations and refineries.
BASF's Wintershall oil and gas exploration subsidiary signed an MoU with the National Iranian Oil Company in April 2016.
