Ithaca, Kolvetni and Petoro licence in the Dreki Area relinquished


Orkustofnun has today approved the request from the operator Ithaca Petroleum ehf that the company along with its partners, Kolvetni ehf and Petoro Iceland ehf, to be allowed to relinquish their licence issued on 4 January 2013

Orkustofnun has accepted the relinquishment of the licence as the terms of the licence have been fulfilled and all data have been delivered to Orkustofnun as required. 

In accordance with the terms of the licence, the licensees acquired more than 1,000 km of 2D seismic in the summer of 2016. Based on interpretation of the data the operator concluded that the results of the completed exploration work in the 1st sub-period of the licence did not merit the continuation of exploration into the 2nd sub-period.

A management committee meeting of the licensees was held in Reykjavík on 1 December 2016. The exploration work undertaken was reviewed and discussed. The operator's conclusion and recommendation to request formal approval from the authority, Orkustofnun, for the relinquishment of Licence No. 2013/02, was unanimously agreed by the management committee. 

Geological studies based on the new seismic data indicate that the probability of finding oil and/or gas in commercial quantities in the selected focus area within their licence does not sufficiently support committing to the next phase in the work programme. The interpretation by Ithaca Petroleum suggests that there is more fracturing in their area of interest than had been initially considered. The potential source rocks are also deeper in the crust than anticipated, diminishing the chances of oil formation.

The geological setting of this licence area is different from the area of the remaining licence (2014/01), operated by CNOOC International, which continues exploration according to their work programme. 

Orkustofnun thanks the licensees involved for the contribution to the exploration of the Dreki Area.