TORSHAVN, Faroe Islands – The government of the Faroe Islands will invite applications for new offshore licenses in 2017, under the country’s 4th Exploration Round.
Minister of Trade and Industry Johan Dahl said: “To some, it might be a bit unexpected to announce a new round, given the current low oil prices and the overall situation in the oil industry.
“However, time brings change. We know that there is oil to be found in our subsoil and that that our subsoil is underexplored. Therefore, between now and 2017, we will be working diligently to optimize the conditions for a successful round.”
Over the past 15 years, nine wells have been drilled in Faroese waters and hydrocarbons have been discovered, but not in commercial quantities. However, the Faroese Earth and Energy Directorate claims that several areas on the Faroe shelf warrant further exploration and that prospects are good for commercial discoveries.
By announcing the next round so far in advance, the government aims to give interested parties sufficient time to prepare and to provide seismic contractors with the opportunity to acquire new data.
Dahl has also determined that the islands’ open door application procedure will be closed until after the round has been staged in 2017.