About Prospecting Licenses
A prospecting license gives the licensee the right to perform various geological surveys, which may lead to the production of oil and natural gas from the Faroese subsoil. However a prospecting license does not give the licensee the right to produce oil or natural gas.
The cost of a prospecting license is 10.000 DKK. Additionally there is an administration fee of 10.000 DKK for processing the application summing the total cost up to 20.000 DKK.
Jarðfeingi receives a copy of all survey results which subsequently are stored at Jarðfeingi.
To avoid disturbing spawning stocks and fishing activity, seismic surveys can only take place during certain periods of the year.
In addition, the licensee is obliged to take a Faroese fishery representative on board the research vessel. The fishery representative is responsible for the liaison with fishing vessels in the area as well as the authorities onshore, to ensure that the seismic activity is carried out with due consideration to other activities in the area.
The Faroese Geological Survey can point to qualified fishery representatives.
How to obtain a Prospecting License
In order to perform geophysical and geological surveys with a view to hydrocarbon exploration in the Faroe Islands or the Faroese offshore area a Prospecting License is needed. Jarðfeingi is the licensing authority, cf Act no 31 of 16 March 1998 on Hydrocarbon Activities, as amended by Parliamentary Act No 52 of 26 May 2010.
Companies wishing to obtain a Prospecting License are kindly asked to note the following:
1. Applications for Prospecting Licenses must be submitted to:
Faroese Geological Survey
Jóannesar Paturssonargøta 32-34
P.O. Box 3059
2. Before Jarðfeingi takes an application under consideration, applicants must pay an application fee of DKK 10,000.00. Jarðfeingi will send you an invoice. When transferring the invoice, please remark: 142571-2191-0700, Jarðfeingi.
3. An application for a Prospecting License shall as a minimum include the following information:
- the area to be explored (position lines etc.),
- indication of the time of the survey,
- exploration methods and instrumentation,
- vessels, including auxiliary vessels, to be used and their nationality,
4. No more than 15 days after receiving the invoice for the Prospecting License the license fee of DKK 10,000.00 must be paid. Jarðfeingi will send you the invoice.
5. A Prospecting License is valid for the year the license is assigned and entitles the licensee to perform scientific surveys (seismic, magnetic, gravimetric, geologic sampling etc.).
6. Licensees performing offshore surveys are obliged to take a Fishery Representative on board the survey vessel.
The Fishery Representative is responsible for all liaison with fishing vessels and onshore fisheries authorities.
If a licensee wishes to operate an auxiliary vessel together with the survey vessel this must be clearly stated in the notification form. This will, however, not relieve the licensee from the duty to take a Fishery Representative on board either the survey vessel or the auxiliary vessel.
7. The Prospecting License will stipulate a duty for the licensee to submit reports and data to Jarðfeingi.
8. The Faroese authorities welcome licensees’ readiness to provide employment for Faroese candidates as well as their willingness to give Faroese companies opportunities, in competition with other companies, to provide goods and services, eg auxiliary vessels, connected with the performance of the activities under the Prospecting License.