Chinese Oil Company to Apply for Iceland Oil License Skip to content

Chinese Oil Company to Apply for Iceland Oil License

Chinese oil company CNOOC International Ltd. will participate in the application by Icelandic company Eykon Energy to the National Energy Authority of Iceland (NEA), Orkustofnun, in the second round of licensing for the Dragon Zone (Drekasvæði), as stated on the agency’s website.

oil_drilling_ship_wikiArchive photo: Wikipedia.

Eykon Energy had received an extension from the Icelandic Energy Authority until July 1 to find a partner with which to submit its application as an operator and potential licensee.

The agency will evaluate the financial and technical capacity of the applicants to undertake exploration and production of hydrocarbons.

A decision on the application is expected in the autumn.

Norway has the right to a 25 percent participation in all licenses granted in the area according to a 1981 agreement between Norway and Iceland.

In January, the first 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.

Related:

07.05.2013 | Third Iceland Oil Exploration License in Progress

06.05.2013 | In the Dragon’s Den

ZR

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