The Iranian regime stands to gain over £500 million in profits from its share in a North Sea gas field following recent developments regarding the lifting of US sanctions, according to analysis by The Observer. This substantial sum has accumulated in a frozen bank account over the past eight years, significantly increasing in value due to the surge in energy prices following Russia’s invasion of Ukraine.
Iran’s involvement in the Rhum gas field, located approximately 240 miles north-east of Aberdeen, dates back 50 years. This long-standing interest has historically presented complexities for successive UK governments, regulatory bodies, and its operational partners, initially BP and more recently Serica Energy.
Iran’s state-owned oil industry holds a 50% stake in the Rhum field through its UK subsidiary, Iranian Oil Company (UK) Limited (IOC). By the close of 2024, IOC’s accounts revealed it held £540,745,000 in cash, safeguarded within an escrow account managed by Lloyds Banking Group.
Following the re-imposition of sanctions on Iran’s energy sector by the first Trump administration in 2018, IOC’s stake was placed into an offshore trust. This arrangement was designed to enable Serica Energy to continue operating the Rhum field while preventing the Iranian regime from directly benefiting from the UK gas industry. The IOC’s accounts state that “When the US sanctions are lifted, this arrangement will be unwound and ownership will revert back to previous shareholders.”
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Before 2018, IOC’s ownership was linked to Naftiran Intertrade Company Limited, an Iranian-controlled holding company operating from Malaysia.
While a recent deal saw the US agree to lift its sanctions and “make fully available frozen or restricted funds,” the precise timeline for this remains unconfirmed. Former US President Donald Trump commented on the situation on the sidelines of a G7 summit, stating: “It’s not our money, it’s their money… At a certain point in time, I guess we’re going to have to give it back.”
Despite the potential easing of US measures, the UK Foreign Office announced fresh sanctions in September on 70 Iranian individuals and entities, including the National Iranian Oil Company, which is the ultimate owner of IOC. This indicates that while the funds may be unfrozen by the US, other sanctions regimes could still impact the ultimate beneficiaries.
