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Iceland to become a new oil country as oil contracts are being dished out

Saturday, 29 December 2012
For the first time ever, the Norwegian government is staring to drill for oil outside Norway. This has pushed them to start drilling in the Icelandic marine base near the Norwegian archipelago of Jan Mayen Island, northeast of Iceland.

Iceland, which has already started recovering after the last banking crisis of 2008 knocked of the economy off course could start heading towards earning big time from black goal.

Norwegian state company, Petoro AS on January 4 signed to continue the agreement between the two countries, which was reached in 22 October 1981 between Iceland, and Norway, a Convention on the Continental Shelf between Iceland and Jan Mayen.

The Convention defines the continental shelf between the two countries and established a special partnership for petroleum operations in a defined border area between Iceland and Jan Mayen. In the section of the agreement area in the Icelandic shelf, Norway would participate in the petroleum industry with a share of 25 percent.

The Arctic is considered to have the largest remaining oil reserves in the world, but Petoro warns that uncertainty is large.

The Icelandic food and energy has now announced that the Icelandic Energy Agency (NEA - National Energy Authority) has decided to award the company Faroe Petroleum Norway and Iceland Petroleum ehf., on the one hand, and Valiant Petroleum ehf. and Kolvetni ehf. licenses for exploration and production of hydrocarbons in " and Valiant Petroleum ehf. and Kolvetni ehf.
by Scancomark.com Team

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