Atlantic Petroleum has submitted its application for a new exploration and production license in the Faroe Islands to the relevant authorities. This application has been made under the Open Door licensing regime of the Faroe Islands and will aid in the search for new oil and gas resources in the region.
Details of the Application and Atlantic Petroleum's Stake
The application has been submitted to Jarðfeingi, the geological and energy authority of the Faroe Islands, through an associated company that is being formed. Atlantic Petroleum expects to hold 40 percent of the shares in this applicant company. However, the company has not disclosed details regarding the location or size of the area covered by the application.
Open Door Licensing Regime and Next Steps
Under the Open Door licensing regime, submitting an application does not mean that the area is granted. Jarðfeingi may issue a public announcement confirming the receipt of this application. Following this announcement, other interested companies can apply for the same area or part of it. Competing applicants have at least 90 days after the announcement is published to submit their applications before a license is issued.
This move is expected to increase competition in the oil and gas exploration industry in the Faroe Islands and create new opportunities for discovering energy resources in the area. Despite their small size, the Faroe Islands have attracted the attention of international companies due to their geographical location and potential natural resources.
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