Thursday, October 28, 2010

BP (NYSE:BP) Not Clear Yet on Continuing Venture with Iran in North Sea

Unsure of what its requirements are in its joint venture with Iranian Oil Co. U.K. Ltd., BP (NYSE:BP) asking for a ruling and guidance on how to proceed.

The European Union announced sanctions against Iran because of its perceived pursuit of a nuclear policy which includes weapons-grade uranium, that could be made into a potent bomb.

Sanction have been put in place which regulate business in such a way as to not allow the nuclear program of Iran to be supported by European technology in any way.

It seems part of the question is whether or not a business enterprise in general that generates revenue would be considered an aid to the Iranian nuclear program.

BP spokesman Richard Grant, based in Aberdeen, said the situation is "quite complex," and the company wants the joint venture with Iran concerning the Rhum field clarified.

If found to be under the new regulations, production at the project would be halted.

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