Icelandic Oil Rush Begins

Published December 6, 2012

As international interest in Iceland’s oil potential grows, foreign companies are taking a closer look and buying drilling licences.
The Dragon Area, located in the northeast corner of Iceland’s territorial waters, has long been suspected to be rich in oil and natural gas. Last February, The National Energy Authority reported that Britain’s TGS and Norway’s Volcanic Basin Petroleum Research found fairly conclusive evidence of the existence of oil.

As billions of barrels of oil are suspected to be in the Arctic, this discovery prompted a heated round of bidding for licences. The Norwegian, Russian and British have all shown an interest in the Dragon Area.

BBC now reports that one Scottish company, Faroe Petroleum, has secured provisional exploration licences for the area.
Chief executive of Faroe Petroleum Graham Stewart told BBC, “We are very pleased to announce our entry into Iceland’s offshore, which represents an important extension of our frontier exploration portfolio in the UK west of Shetlands, Norwegian Sea and Norwegian Barents Sea. As with our Norwegian Barents Sea licences, this new Icelandic Jan Mayen Ridge licence has significant hydrocarbon potential, and is located in ice-free waters.”

It is unknown how much oil or natural gas is located in the Dragon Area, but a significant reserve discovery could be a boon to Iceland’s lagging, albeit recovering, economy.


News
New Laws May Delay Investigation Of Serious Offenses

New Laws May Delay Investigation Of Serious Offenses

by

District Attorney Ólafur Þór Hauksson is concerned that a new bill about the conditions for intercepting phone calls could slow

News
10% Of Working Icelanders Employed In Tourism Industry

10% Of Working Icelanders Employed In Tourism Industry

by

Iceland’s tourism industry has become a major source of employment in Iceland, and demand for labour will continue to grow.

News
Two New Presidential Polls Show Similar Results

Two New Presidential Polls Show Similar Results

by

Two new polls on the presidential candidates have just been released in the wake of a third yesterday, all showing

News
“Champagne Clubs” Frequently Charged With Prostitution, Human Trafficking

“Champagne Clubs” Frequently Charged With Prostitution, Human Trafficking

by

Reykjavík’s “champagne clubs” have been implicated in human trafficking and prostitution on dozens of occasions since 2011. This came to

News
Eze Deported This Morning – VIDEOS

Eze Deported This Morning – VIDEOS

by

Two Icelanders were arrested while attempting to block the deportation of a Nigerian asylum seeker, whose case has raised questions

News
UTL Ignores Appeals Board, Deports Asylum Seeker Anyway

UTL Ignores Appeals Board, Deports Asylum Seeker Anyway

by

Despite a ruling from the Immigration Appeals Board that a Nigerian man who sought asylum four years ago cannot be

Show Me More!