The China National Offshore Oil Corporation (CNOOC) has partnered with Iceland’s Eykon Energy to bid for exploration rights in the Dragon Area off the north-east coast of Iceland, an area thought to be rich in oil reserves.
According to the Wall Street Journal, Eykon Energy had applied for a license to explore the Dragon area during the tender round but was unable to move forward without a partner, which led to the company inviting CNOOC to take part in their bid for licensing.
“Now we can evaluate the technical merits of the application and the qualifications of the companies, both technical and financial, before we make a decision,” said Þórarinn Sveinn Arnarson, a licensing manager with the National Energy Authority, to the Wall Street Journal.
Chinese companies have been eager to become involved with Arctic oil exploration, approaching Russia earlier this year to become involved with drilling off the country’s northern coasts.
According to Platts, should the application of CNOOC and Eykon be successful the Chinese firm would retain an 80% interest in the acreage they are granted, with Eykon taking a 20% interest.