Oil optimism rekindled

The foreign ministry, which oversees oil issues, is now preparing a fifth licencing round for oil and gas exploration.

Previously considered one of the most hostile of the UK’s offshore frontiers, the area west of the Shetland Islands has now become an increasingly important part of the British licencing processes.

The 32nd licencing round for the UK is expected to run from June to November this year, and part of the licencing area is expected to move nearer to the Shetland shelf.

The Shetland shelf is believed to be the only area that will yield profits in the UK in 2030.

Significant parts of exploration activity in the UK are now taking place near the Faroe shelf, which makes it highly likely that oil or gas can be found in an area that crosses the border between the two nations.

Jarðfeingi, the Faroese Geological Survey, has discussed this possibility with British oil and gas authorities, and both parties agree that there are mutual benefits in organising the licensing on both sides of the Faroes’ maritime border.

This cooperation is a key reason for launching the fifth licencing round, says Poul Michelsen, the Minister of Trade and Foreign Affairs.

The area proposed for the fifth licencing round covers 9,418 square kilometres on the Shetland shelf.

Research from the Faroese Geological Survey suggests that the most promising area around the Faroe shelf is adjacent to the UK maritime border in the southern part of the Shetland shelf.

This is also the area which oil companies are currently showing the most interest in.

Translated by prosa.fo