From the signing today. Ola Borten Moe, on the right, Norways Minister of Petroleum and Energy. In the middle is Guðni Th. Jóhannesson, director general of the Icelandic National Energy Board and on the left Steingrímur J. Sigfússon, minister of Industry and Innovation. Photo: Ministry of Industry and Innovation)"Today is the beginning of oil adventures in Iceland" was said on the day the National Energy Authority of Iceland signed the first licenses for exploration and production of hydrocarbons Icelandic waters, more specific in the Dreki Area.

Two licenses were granted, to Faroe Petroleum Norge AS, Branch in Iceland, Iceland Petroleum ehf. and Petoro Iceland AS, on the one hand, and Valiant Petroleum ehf., Kolvetni ehf. and Petoro Iceland AS on the other.

The Norwegian Parliament approved the decision on the participation by the Kingdom of Norway through the State-owned oil company Petoro AS in accordance with the agreement between Norway and Iceland from 1981.

There is one license to Faroe Petroleum Norge AS as an operator with 67,5% share, Íslenskt Kolvetni with 7,5% share and Petoro Iceland with 25% share. The other license is to Valiant Petroleum ehf. as an operator with

The Dreki area is to the north-east of Iceland (Map:

56,25 % share, Kolvetni ehf. with 18,75 % share og Petoro Iceland AS with 25 % share.

The Norwegian Minister of Petroleum and Energy, Mr. Ola Borten Moe, was present at the signing of the licenses as the state oil company of Norway, Petoro, will participate in both licenses.

"All leads to Iceland becoming an oil nation," says chief of exploration Terje Hagevang, Norwegian working at the British company Valiant Petroleum. Hagevang researched the area for his master's program and for a long time has been suggestion the Jan Mayen ridge is rich in oil reserves.

This will be the first oil exploration in Icelandic waters. The Dreki-Area is shown on the map here on the right local communities in North-East of Iceland have already started on preparations to service the exploration.

„This is very important, just like when the oil adventures began in Norway in 1695-1966. The adventure is here and it has a future for petroleum activities in Icelandic waters. This is the start of it, " Hagevang said to Stöð 2 in 

Blue: Valiant Petroleum ehf. and Kolvetni ehf.  Red: Faroe Petroleum Norge AS, Branch in Iceland and Iceland Petroleum ehf. Click to enlarge. Photo by NEA.


Hagevang has reported that the Jan Mayen ridge, which includes the Dreki-Area, is as rich in petroleum as the Norwegian sea. „New research has strengthened this belief. It shows that the area has everything to produce petroleum."

The first rig in the area is expected in 2017 or 2018, likely to be deployed in the Norwegian side at first.

Steingrímur J. Sigfússon, minister of INdustry and Innovation in Iceland, welcomed the Norwegian knowledge of oil exploration and said that this was a landmark for the country.

The two licenses are valid from today through 4.1.2020.

 - The License for Valiant Petroleum ehf, Kolvetni ehf, Petoro Iceland AS

Letter of Agreement
The License for Faroe Petroleum Norge AS, Íslenskt Kolvetni ehf. Petoro Iceland AS.
Letter of Agreement 


Stöð 2

Map of potential oil and gas areas