New Licensing Round for Oil Exploration in Iceland Skip to content

New Licensing Round for Oil Exploration in Iceland

The second licensing round for oil exploration in the so-called Dragon Zone off Iceland’s northeastern coast opened on Monday. The application period continues until April 2, 2012.

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The harbor in Thórshöfn, which would service the Dragon Zone. Photo by Páll Stefánsson.

Application guidelines and information about the Dragon Zone are available on the website of the National Energy Authority.

The first licensing round was unsuccessful, among other reasons because of the complex tax system. Since then, legal amendments have been carried out which should make it easier to estimate whether oil exploration in the area is viable, ruv.is reports.

If this licensing round proves successful, a special permit for research and oil exploration may be granted for up to 12 years. In that period, the national economy would benefit from revenue from various services in connection with the research.

Thórarinn Sveinn Arnarsson, project manager at the National Energy Authority, said it is impossible to estimate how much interest there is for the licensing round.

Last year, the authority presented the Dragon Zone at Stavanger, Norway. The presentation was attended by representatives of oil companies, some of whom requested a meeting afterwards.

Now oil companies have six months to decide whether to make bids for exploration licenses to the Dragon Zone, or until the deadline of April 2, 2012. Afterwards, the decision on granting licenses will be made no later than eight months.

Click here to read more about the Dragon Zone and related stories.

ESA

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