The National Energy Authority of Iceland (NEA, known as Orkustofnun in Icelandic) issued the first licenses for the exploration and production of hydrocarbons in the Dragon Zone this morning.

Photo: Páll Stefánsson/Iceland Review.

As reported in December, the Icelandic branch of Faroe Petroleum Norge AS and Íslenskt Kolvetni ehf., along with Valiant Petroleum ehf. and Norwegian state-owned Petoro, were granted licenses. The Norwegian government has since approved the participation of Petoro.

Two licenses were issued, one to Faroe Petroleum Norge AS as an operator with a 67.5 percent share, Íslenskt Kolvetni ehf. with a 7.5 percent share and Petoro Iceland with a 25 percent share and the other to Valiant Petroleum ehf. as an operator with a 56.25 percent share, Kolvetni ehf. with a 18.75 percent share and Petoro Iceland AS with a 25 percent share, as stated on NEA’s website.

Norway’s Minister for Petroleum and Energy Ola Borten Moe joined Iceland’s Minister for Industries and Innovation, Steingrímur J. Sigfússon and CEO of NEA Guðni A. Jóhannesson at the  signing of the contracts, visir.is reports.

Icelandic President Ólafur Ragnar Grímsson announced last month that a national wealth fund for revenue from potential oil discoveries in the country’s waters is in the works.

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

ZR