Iceland Open for Oil Exploration Applications Skip to content

Iceland Open for Oil Exploration Applications

By Iceland Review

The Icelandic government is again calling for applications for oil explorations rights in the Dragon Zone, off Iceland’s northeastern corner. There are five permits available. A new international tender offer is also being prepared for next year.

The village of Thórshöfn in northeast Iceland, which might prosper from oil exploration. Photo by Páll Stefánsson.

The Dragon Zone tender offer began in January 2009 and was Iceland’s first tender in the field of oil exploration. Five permits were also available at that time. In May it was revealed that two applications had been received but later both applications were withdrawn, Stöd 2 reports.

“It is open for everyone interested in applying for these permits to send applications to the National Energy Authority. Then they are evaluated in a professional manner,” said Minister of Industry Katrín Júlíusdóttir of the current tender. “Then the plan is to have a new tender next year.”

Icelandic taxation laws were the reason for the original applicants dropping out. When asked whether a change to the taxation in this field is being considered, the minister said it will be looked into in accordance with how Norway decides to tax its part of the Dragon Zone.

“We want to be competitive but we will nonetheless price our natural resources high,” Júlíusdóttir said.

Click here to read more about oil exploration in the Dragon Zone.

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