The undiscovered oil and gas potential offshore West Greenland, which includes the Baffin Bay Licensing Round area, is estimated by the US Geological Survey (USGS) to contain up to 18 billion barrels of oil equivalent.
The licensing round, for which applications are being sought by May 2010, covers the prospective north west area of Greenland and is north of the Disko area where licences were awarded to a number of companies including Cairn Energy, Chevron and Exxon, in 2007.
The area to be licensed is substantial and has been divided into 14 licence blocks covering a total area of 151,358 sqkm. Seismic data coverage has improved significantly during recent years in preparation for licensing rounds in the region and there are nine seismic surveys available covering 21,257 sqkm.
The pre-qualification of Faroe Petroleum as an exploration operator is a key part of the process the company is pursuing in advance of potentially applying for licences in Greenland. The licences are granted on terms similar to the terms applicable in the North Sea.
Graham Stewart, chief executive of Faroe Petroleum, said: “We are pleased to announce our pre-qualification as an operator in Greenland, ahead of the upcoming 2010 Baffin Bay licensing round. As a key part of the Arctic region, with its potential to hold up to 25% of the world’s undiscovered oil and gas resources, this is a very important and significant exploration opportunity.
“Greenland would represent a natural progression for Faroe Petroleum as a frontier exploration company focused on the Atlantic Margin and Norway and with its origins in the Faroe Islands.”
