From Iceland — Faroese May Bid On Oil License

Faroese May Bid On Oil License

Published August 16, 2011

A Faroese oil and gas exploration company might compete with Norway for rights to oil in Icelandic waters.

Drekasvæði, a portion of sea located in the northeast corner of Iceland’s territorial waters, is reputed to be incredibly rich in oil and gas. As yet, no drilling has begun in the area. 

While Russia expressed an interest in possible exploration last year, in the end it was Norway – in conjunction with the National Energy Authority – that began looking for signs of oil and gas, and preliminary results seem to indicate that at least oil is probably under the ocean bed.

The Sunday Times now reports that Faroe Petroleum PLC may also enter bidding for oil licenses when Iceland opens the area for bidding on 3 October. Norwegian oil and gas company Statoil ASA is also expected to take part in the auction.

The Times article cites no sources for this information, so it may all be hearsay at this point, but the Norwegians have definitely expressed an interest, as Grapevine reported.

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