Faroe Gets Gas and Oil Licences from Iceland

Iceland has provisionally awarded seven oil and gas licences. 

The seven licensed blocks are situated in blocks located to the south of the Jan Mayen Ridge,which is located inside the Arctic Circle to the north east of Iceland.

The area is described as a "micro-continent," between East Greenland and the Norwegian Continental Shelf. Several giant oil and gas fields are being developed there.

In a statement, Faroe Petroleum says the Norwegian Ministry of Energy has undertaken to take part in development of five blocks, via the state company Petoro.

Graham Stewart, the company's chief executive, says the blocks have 'significant' hydrocarbon potential, and are in ice-free waters.

Valiant Petroleum has also been awarded a licence in the area.