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EU Sanctions Could Shutter Iranian Gas Venture

Questions surround the future of a Scottish gas field jointly owned by Iran and energy giant BP because of European Union sanctions imposed on Iran.

Reuters news quotes an EU spokesman as saying the sanctions will probably lead to the closure of the Rhum gas field, which is located off the coast of Scotland.

Bloomberg news quotes BP spokesman Matt Taylor as saying the company is studying compliance with new EU guidelines and it is too early to say if the gas field will be shut down.

A BP release from 2003 announcing the Rhum venture said developing the gas field would cost about $485 million. The release also says Rhum is estimated to have 31 billion cubic meters of gas, about two-thirds of it deemed recoverable.

The United Nations imposed a fourth round of sanctions on Iran in June for its refusal to stop enriching uranium. The EU, the U.S. and other world powers have imposed additional penalties.

Iran says its disputed nuclear program is for peaceful use.

Some information for this report was provided by AFP and Reuters.