facebook
twitter
rss
account
search
search
 

Iceland issues first oil exploration deals

Jan. 7, 2013 at 10:05 AM   |   Comments

REYKJAVIK, Iceland, Jan. 7 (UPI) -- The National Energy Authority of Iceland announced it granted the first exploration and production contracts for acreage off the country's northeast coast.

The National Energy Authority of Iceland, dubbed Orkustofnun, issued licenses to a group of regional oil companies for exploration and production of hydrocarbons in the Dreki area off the northeast coast.

Orkustofnun, in a statement, said it had evaluated the reserve area through coordination with the Ministry of Environment and the Ministry of Fisheries.

"Orkustofnun studied the financial capacity of the parent companies of the applicants in order to ensure that the applicants have sufficient financial strength to conduct the activities for the long-term and can handle the corresponding environmental and safety elements," the agency said.

Iceland's economy was crippled by the global economic crisis that began in 2008. The country produces no oil or natural gas of its own, reports energy reporting website Rigzone.

Faroe Petroleum Norge AS and Valiant Petroleum will serve as individual operators in the exploration and production areas.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Report: Billionaires are hoarding mountains of cash
2
Canada decides to retire two guided missile destroyers Canada decides to retire two guided missile destroyers
3
Obama called on to ban oil trains Obama called on to ban oil trains
4
XXL Magazine to end print edition after 17 years XXL Magazine to end print edition after 17 years
5
Gas prices end long slide Gas prices end long slide
Trending News
Video
x
Feedback