Iceland’s Exclusive Economic Zone and Licensing Rounds

Iceland Map Maritime Boundaries Licensing Rounds

July, 2012 – Updated map of Iceland showing maritime boundaries, Dreki Area, and Jan Mayen Agreement Area.
  • Dreki Licensing Area – (red gridded area) lies within Iceland’s northeastern maritime boundary.  More information can be found in a 1989 report by Gunnarsson, Sand and Gudlaugsson.
  • Jan Mayen Ridge – thought to have hydrocarbon reserves due to it’s geological similarities with other proven hydrocarbon basins located in the Atlantic northeast.
  • Jan Mayen Agreement area – (green area) represents an agreed upon area, from 1981, between Norway and Iceland.  According to this agreement, either country is entitled to a stake of at least 25% in any hydrocarbon activity taking place in the other country’s agreement section.  The area is defined by the 70º 35′ N, 68º 00′ N, 10º 30′ W, and 6º 30′ W co-ordinates.

Licensing Rounds

  • The first oil and gas licensing round within Icelandic waters took place in 2009. The auction comprised of the northernmost 42,700 sq. km’s of the Dreki area of northeastern Iceland.  The round yielded interest from Aker Exporation, along with a joint bid from Sagex Petroleum and Lindir Exploration.  Two thirds of the bids were for land plots situated within the special Jan Mayen Agreement area (See definition). Unattractive terms later lead the two bidders to retract.
  • The second oil and gas licensing round opened on the 3rd of October, 2011. Applications deadlines were set to the 2nd of April, 2012.  Awards will take place prior to the end of November, 2012.

Further, updated (2012), information related to the Icelandic licensing rounds can be found in this brochure.

 Sources
  • Orkustofnun – Iceland Offshore Exploration – http://www.os.is/gogn/os-onnur-rit/OS-Iceland-Offshore-Exploration-v022012.pdf
  • Orkustofnun – Announcement of the Second Licensing Round on the Icelandic Continental Shelf – http://www.nea.is/2nd-licensing-round/
  • United Nations – Delimitation Treaties Infobase – Agreement on the Continental Shelf Between Iceland and Jan Mayen, 22 October 1981 – http://www.un.org/Depts/los/LEGISLATIONANDTREATIES/PDFFILES/TREATIES/ISL-NOR1981CS.PDF
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