Iceland’s National Energy Authority, Orkustofnun, granted a license for the Dreki area to CNOOC Iceland ehf, Eykon Energy ehf, and Petoro Iceland AS in the third and final round for the region.
CNOOC Iceland, subsidiary of CNOOC International ltd, was granted operatorship with a 60% share in the license. Petoro Iceland received a 25% share, and Eykon Energy took the remaining 15%.
The license was awarded for the prospecting, exploration and production of hydrocarbons. Orkustofnun was advised by the Ministry for the Environment and the Ministry of Fisheries and Agriculture in accordance with Act No. 13/2001, and evaluated the opinions based on the application and the work program involved, which extends over 12 years.
The Dreki area sits between the Norwegian and Greenland continental shelves, northeast of Iceland on the Jan Mayen Ridge.
In January 2013, Orkustofnun awarded two licenses for the second licensing round in the Dreki to UK’s Faroe Petroleum with a 67.5% stake, Petoro for a 25% stake, and Iceland Petroleum for a 7.5% stake. The second license was awarded to UK’s Valiant Petroleum for a 56.25% stake, and partners Kovetni and Petoro holding 18.75% and 25% stake, respectively.
As a result of Sagex Petroleum and Aker Exploration withdrawing their applications for exploration and production licenses for the Dreki area in 2009, Orkustofnun did not issue any licenses during the first licensing round.
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