BP shuts joint gas venture with Iran

BP is closing down its Rhum gas field in the North Sea because of the latest European Union sanctions against Iran.

The oil giant said it was shutting down the field, in which the Iranian Oil Company Limited has a 50 per cent interest, while it waited for clarification on EU sanctions from the UK Government. EU foreign ministers imposed extra sanctions on Iran last month targeting its oil and gas industries in order to apply pressure on Tehran about its nuclear programme.

Rhum produced up to 6 million cubic metres of gas a day in the first six months of 2010, according to Government figures, which is equivalent to 1 per cent of Britain's peak gas demand forecast for this winter.