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Tag: exploration

  • Norway takes part in exploration in Iceland

    Norway takes part in exploration in Iceland

    The Dreki area on a map

    The National Energy Authority of Iceland (NEA) has today finished processing two applications for licences for exploration and production of hydrocarbons in the Dreki Area. The Ministry of Petroleum and Energy in Norway has today, 3 December 2012, notified NEA of their decision to participate in both licences to a 25 % share in accordance with the agreement between Iceland and Norway.

    NEA sought the opinions of the Ministry for the Environment and the Ministry of Fisheries and Agriculture in accordance with the hydrocarbons act and evaluated the opinions based on the applications and the work programmes involved.

    Furthermore, NEA made a careful evaluation of the technical and geological capacity of the applicants to handle the extensive activities associated with the licence. Finally, NEA 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.

    Following the processing of NEA of the applications

    Blue: Valiant Petroleum ehf. and Kolvetni ehf. Red: Faroe Petroleum Norge AS, Branch in Iceland and Iceland Petroleum ehf.

    at the end of October, NEA made a decision to grant licences to Faroe Petroleum Norge AS, Branch in Iceland and Iceland Petroleum ehf., on the one hand, and Valiant Petroleum ehf. and Kolvetni ehf., on the other.

    Furthermore, the Norwegian authorities were notified of the decision, draft licences sent for their perusal and a formal answer requested on whether they intended to participate in the licences in accordance with the agreement between Iceland and Norway from 1981, which entails the right of Norway to participate in licences within the area of the agreement up to a 25 % share.

    The anticipated licensees have read the draft licences and submitted their comments, which NEA has taken into account as has been agreed by the parties involved. Norway has also participated in this process through the Ministry of Petroleum and Energy, i.e. gone through the draft licences and submitted comments to NEA.

    The Ministry of Petroleum and Energy in Norway has today, 3 December 2012, notified NEA of Norway’s decision to participate in both licences to a 25 % share in accordance with the agreement between Iceland and Norway.

    The licences cannot by issued before the Norwegian Parliament has approved the decision on the participation by the Kingdom of Norway through the State-owned oil company Petoro AS. Following this and the signing of the parties to the licences of their joint operating agreements, NEA will grant the licences, probably in the beginning of January of next year.

    A third application was received from Eykon Energy ehf. The processing of this application was delayed and the applicant given a respite until 1 May 2013 to find an additional participant in the licence that receives approval by NEA on having sufficient expertise, experience and capacity to undertake the licenced activities. NEA will take the application for final processing subsequent to receiving information on such a new participant in the application.

    Sources

    NEA

    Map of potential oil and gas areas

  • A Shift to Arctic Oil

    A Shift to Arctic Oil

    offshore oil platform

    Unrest in the Middle East means the potential oil riches in Arctic areas like Greenland are more important than ever, the island’s premier said on Wednesday, criticizing environmental groups that want to hamper exploration.

    Greenlan enjoys self-rule as part of the Kingdom of Denmark, has issued 20 licenses for oil and gas exploration in Baffin Bay on its West coast. Some estimates put Greenland’s offshore oil reserves at 20 billion barrels.

    Kuupik Kleist said that there is a strong focus on the Arctic, especially because of the richness of natural resources. The very last days’ developments in the Middle East have put more (emphasis) on this focus.

    “We are of course influenced and also highly affected by what’s happening on world markets,” Mr. Kleist said at an Ottawa conference on the Arctic.

    Speaking separately, Greenland’s industry and mineral resources minister, Ove Karl Berthelsen, said exploration licenses for blocks in the Greenland Sea to the east would be auctioned in 2012 and 2013. Firms with licenses include U.S.-based ConocoPhillips and Exxon, Canada’s Encana, Norway’s Statoil, France’s GDF Suez, Britain’s Cairn Energy, Royal Dutch Shell Plc, Denmark’s Maersk and DONG Energy, and Greenland’s national oil company Nunaoil.

    Kuupik Kleist

    Although environmental groups say the Baffin Bay exploration blocks are particularly vulnerable to oil spills and should be kept off limits, Kuupik Kleist made it clear there is no turning back where he said that if Greenland should stay away from exploiting its mineral resources, some other place on Earth will do it.

    Greenland, dependent on the fishing industry and funding from Denmark, says it needs the money to cope with pressing social needs. Mr. Kleist stated that the status quo is not an option, since Greenland is faced with big huge challenges in all areas, social, educational, health and infrastructure.

    The Greenland government says while there are risks to offshore drilling, modern technologies mean the dangers are much lower than in the past. Last year, Greenpeace protesters boarded a drilling rig operated by Cairn Energy to highlight what they said were the dangers of a spill in one of the world’s most remote regions.

    “You see environmental groups coming now to the Arctic area and trying to hinder activities conducted by indigenous governments… Why didn’t they do that like 100 years ago, 50 years ago or even just 15 years ago?” said Kleist. “I think Greenpeace has a lot of work to do in other places in the world. Greenland is not the most dangerous place.“

    Source: Reuters