Iceland issues the first licenses for exploration and production of hydrocarbons in the Dreki Area.



Orkustofnun has today, in the presene of the Norwegian Minister of Petroleum and Energy, Ola Borten Moe, and Minister of Industries and Innovation, Steingrímur J. Sigfússon, issued two licences for exploration and production of hydrocarbons in the Dreki Area.


Orkustofnun granted licences to Faroe Petroleum Norge AS, Branch in Iceland, Íslenskt Kolvetni ehf. (Iceland Petroleum), and Petoro Iceland on the one hand, and Valiant Petroleum ehf., Kolvetni ehf., and Petoro Iceland 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.

One license is granted to Faroe Petroleum Norge AS as an operator with 67,5% share, Iceland Petroleum with 7,5% share and Petoro Iceland with 25% share.

The other license is granted to Valiant Petroleum ehf. as an operator with 56,25 % share, Kolvetni ehf. with 18,75 % share og Petoro Iceland AS with 25 % share.

The licences are issued with reference to Act No. 13/2001 on prospecting, exploration and production of hydrocarbons, with later amendments, Regulation No. 884/2011, and information in the licence applications and other information from the applicants.

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

                 Map of the area


Blue: Valiant Petroleum ehf. and Kolvetni ehf.

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


Licence to Faroe Petroleum Norge AS., Iceland Petroleum ehf. and Petoro Iceland

Licence to Valiant Petroleum ehf., Kolvetni ehf. and Petoro Iceland