North Sea independent Serica Energy (AIM: SQZ) has applied to extend a license exempting it from potential United States sanctions on its stake in the Rhum field.
The firm said it has managed to secure a two-month extension to the end of March as it seeks terms of a new, long-term licence from the USA’s Office of Foreign Assets Control (OFAC).
Serica requires the license as the Iranian government, which is heavily sanctioned by the US, owns 50% of the field.
The extension gives Serica a little extra time to secure the longer-term license following the transition to the new Trump administration at the White House.
Analysts and the firm are optimistic of being able to continue evading sanctions despite the US president ramping up a more hostile approach to global trade.
President Donald Trump has caused shockwaves to markets across the world after announcing terms of a trade war with some of its closest trading partners over the weekend.
Oil prices jumped on Monday after Trump imposed tariffs on Canada, Mexico and China, raising fears of crude supply disruption as well as the prospect slower global growth and inflation.
So far, the UK is hoping to avoid the imposition of US trade tariffs.
Serica confirmed the Rhum field has benefited from an OFAC license continuously since 2013. Serica took over its stake in Rhum from BP (LON: BP) in a deal worth £300 million in 2017.
Panmure Liberum analyst Ashley Kelty said his firm sees “no reason whatsoever” the long-term license will not be renewed.
He added: “All of the profits generated from gas sales are sitting in a locked ESCROW account to which Iran has never had access to.”
Serica boss Chris Cox recently told Energy Voice it will likely increase a current five well drilling campaign on its Bruce, Keith and Rhum hub.