Norwegian state-owned oil company Petoro will take part in the search for oil in the Dragon Zone off Northeast Iceland. The National Energy Authority of Iceland (NEA) completed the processing of application for licenses for exploration and production of hydrocarbons in the Dragon Zone today.

Archive photo by Páll Stefánsson.

The Ministry of Petroleum and Energy in Norway will participate in both licenses with a 25 percent share in accordance with the agreement between the two countries.

The NEA evaluated the technical, geological, and financial capacity of the applicants, as stated on its website. In October, the NEA announced the decision to grant licenses to Faroe Petroleum Norge AS, Branch in Iceland and Iceland Petroleum ehf., on the one hand, and Valiant Petroleum ehf. and Kolvetni ehf., on the other.

The Norwegian authorities were asked whether they intended to participate in the licenses in accordance with the 1981 agreement between Iceland and Norway which grants Norway the right to participate in licenses within the area of the agreement up to a 25 percent share.

The issuing of the licenses is subject to approval of the decision by the Norwegian Parliament. Following approval, the licenses are expected to be granted at the beginning of January.

Click here to read more about the search for oil in Icelandic waters.

ZR

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