Oil companies gearing up for Iceland exploration licence auction

Iceland is this autumn expected to call for bids on oil and gas exploration licences in the offshore Dreki Area, north-east of the country.

According to the Sunday Times, the London-listed oil and gas explorer Faroe Petroleum PLC is preparing to bid for an exploration licence.

The newspaper also claims that the Norwegian oil and gas giant, Statoil will also likely throw its hat into the ring when bidding starts on the 3rd October; although the source of that information is not revealed.

The latest call for bids comes after an unsuccessful first round in 2009 which attracted just two small companies who later returned the licences due to unfavourable terms, The Sunday Times reports. The National Energy Authority hopes that lessons learnt in 2009 will lead to a successful auction this time.