News


News

Potential participation by the Norwegian state in a new licence for exploration and production of hydrocarbons

16.10.2013

Orkustofnun has today sent the Norwegian authorities a draft of a licence to the Chinese oil company CNOOC International Ltd., daughter company in Iceland, and Eykon Energy ehf. and requested the formal decision from Norway on participation in the licence. The Norwegian State has a right to participate with an interest of 25 % in the licence involved which is 6,227 sq. km in area. Norway has 30 days to make their decision.

Orkustofnun has finished processing the third application received in the second licensing round in the Dreki Area, which had a deadline of 2 April 2012, i.e. the application by Eykon Energy ehf. and the Chinese oil company CNOOC International Ltd. Orkustofnun gave Eykon Energy ehf. an extension to find a partner in the licence, that fulfilled conditions on technical, geological and financial capacity along with Eykon Energy ehf. to be able to undertake the activities involved with the licence. Orkustofnun has approved of CNOOC International Ltd. as partner and co-applicant with Eykon Energy ehf.  and has investigated the technical and financial capacity of the applicants in order to ensure that the applicants, together, have sufficient technical and financial capacity to undertake the activities in the long term and Orkustofnun has informed the applicants on the requirements of the licence. The opinions of the Ministry for the Environment and the Ministry of Fisheries and Agriculture [now: Ministry of Industries and Innovations] had been received prior to the processing of Orkustofnun of the application.

The applicants have received a draft of the licence and have accepted the draft and the requirements of the licence.

In accordance with the Agreement between Iceland and Norway on the area between Iceland and Jan Mayen from 1981, Norway has a right to participate in licences for exploration and production in the Dreki area with up to 25 % interest, if Norway so chooses. Thus, Orkustofnun has sent the Norwegian authorities a draft of the licence to CNOOC International Ltd., daughter company in Iceland, and Eykon Energy ehf. and requested a formal decision by Norway on participation. Norway has 30 days to make their decision. Should Norway decide not to participate, the licence will be granted to CNOOC International Ltd., daughter company in Iceland, and Eykon Energy ehf. together after the 30 day period has passed.