Iceland gets ready for offshore drilling
The Icelandic government is joining the international rush for the Arctic’s oil and gas reserves. Now oil companies are offered 100 exploration licenses in the Dreki Area, outside the country's northeasters coast.
Icelandic authorities have high hopes for the Jan Mayen Ridge, located northeast of the country towards the island of Jan Mayen. -It is clear that considerable oil and gas discoveries could have vigorous impact on Iceland´s economy, Industry Minister Ossur Skarphedinsson says in a press release.
Several British groups and StatoilHydro, of Norway, are among those considering submitting bids in January for about 100 exploration licences. They cover 40,000 square km of ocean more than 300 km northeast of Iceland and south of the Norwegian Jan Mayen islands, the Times reports.
Seismic surveys and other geophysical measurements indicate that producible quantities of oil and gas could be found as they have been in adjacent and geologically similar areas, the Icelandic Ministry of Industry informs. Research on the marine biosphere, climate and sea conditions in the Dreki Area, are already in progress.
The new licences will run for up to 16 years and, if they prove successful, would allow for production for 30 years. The region is relatively unexplored, although a joint preliminary study conducted by Norway and Iceland in the 1980s offered evidence of the existence of oil-bearing rocks.
Map: idnadarraduneyti.is
