Iceland: Three Applications in 2nd Licensing Round

The National Energy Authority Iceland announces that it has received three applications in the second licensing round for exploration and production of hydrocarbons on the Icelandic continental shelf.

The companies that have submitted the applications are: Eykon (unregistered Icelandic company); Faroe Petroleum and Íslenskt kolvetni ehf.;Valiant Petroleum and Kolvetni ehf

The National Energy Authority (NEA) will evaluate the applications in the coming months, in accordance with previously announced criteria.

NEA aims to process the applications by the end of November 2012. If a licence for the exploration and production of hydrocarbons is issued, then exploration will go forward in accordance with the work programme of the license.

Iceland and Norway made an agreement in 1981 on the area between Iceland and Jan Mayen. Accordingly, Norway has a right to up to 25% participation in any licences within this area, which encompasses a part of the Dreki Area. If an application is received for an area that is within the agreement area, NEA will send a copy of the application to Norway. After Norway has received a draft of a licence based on an application, they have 30 days to decide whether to claim their participating right

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Offshore Energy Today Staff, April 3, 2012; Image: Spectrum