Iceland Awards Two Production Licences in Dreki Area

Iceland’s Orkustofnun has on January 4, in the presence of the Norwegian Minister of Petroleum and Energy, Ola Borten Moe, and Minister of Industries and Innovation, Steingrímur J. Sigfússon, issued two licences for exploration and production of hydrocarbons in the Dreki Area.

Orkustofnun granted licences to Faroe Petroleum Norge AS, Branch in Iceland, Íslenskt Kolvetni ehf. (Iceland Petroleum), and Petoro Iceland on the one hand, and Valiant Petroleum ehf., Kolvetni ehf., and Petoro Iceland on the other.

The Norwegian Parliament approved the decision on the participation by the Kingdom of Norway through the State-owned oil company Petoro AS in accordance with the agreement between Norway and Iceland from 1981.

One license is granted to Faroe Petroleum Norge AS as an operator with 67,5% share, Iceland Petroleum with 7,5% share and Petoro Iceland with 25% share.

The other license is granted to Valiant Petroleum ehf. as an operator with 56,25 % share, Kolvetni ehf. with 18,75 % share og Petoro Iceland AS with 25 % share.

The licences are issued with reference to Act No. 13/2001 on prospecting, exploration and production of hydrocarbons, with later amendments, Regulation No. 884/2011, and information in the licence applications and other information from the applicants.

[mappress]

Press Release, January 08, 2013