Faroe Opens Up Third Round for Exploration Licenses

Pursuant to Act no. 45 from May 28, 2008 concerning the Third Faroese Licensing Round, the Minister of Fishery and Natural Resources has invited interested companies to apply for hydrocarbon exploration licenses.

The acreage on offer lies to the east, to the south and to the southwest of the Faroe Islands. It covers 38,405 square kilometers.

When awarding exploration licenses, emphasis will be placed on the work programs that the applicants are willing to undertake. In addition, it is important that the Faroese industry is given an opportunity to participate in the activities to allow hydrocarbon exploration and production to contribute to a more diversified business community.

The Minister of Fishery and Natural Resources, Torbjorn Jacobsen, commented, "The increased amount of information available for the Faroese area, as well as improving technology, will increase the probability for finding commercial quantities of hydrocarbons. There are still large areas remaining to be explored as only six exploration wells have been drilled to date. In addition, these wells are not widely distributed and they have only penetrated a limited part of the stratigraphy."

Applications must be submitted to Jardfeingi by 12:00 pm on November 3, 2008. The Minister intends to award licenses by the end of 2008.