The 5th Faroese Licensing Round opened on 11th July 2019 and was run in conjunction with the 32nd UK Licensing Round. Both rounds closed on 12th November 2019.

In preparations for the 5th licensing round Jarðfeingi, together with the Ministry of Foreign Affairs and Trade, secured Parliamentary approval for adjustments in the terms and conditions of licenses and licensing procedures to align them more closely to those which obtain in the UK. Companies can now look at the area in the knowledge that the licensing regimes are similar on both sides of the border. This may be considered of particular relevance in relation to investment decisions in those areas where the geology is also similar on both sides with the possibility of prospects crossing the border.

See the invitation letter from the Minister of Foreign Affairs and Trades on the right >

Map of licensing area for the 5th Round

Download the shapefile for the 5th Round here

Invitation to apply for exploration and production licences

In accordance with section 7(1) of Act No. 31 of 16 March 1998 on Hydrocarbon Activities, the Minister of Foreign Affairs and Trade hereby invites you to apply for licenses for exploration and production of hydrocarbons on the Faroese continental shelf. The area to be offered for licensing and the terms and conditions on which licenses will be granted are defined in Parliamentary Act No. 49 of 7 May 2019 on the Fifth Faroese Licensing Round.


Time frame (The round is closed)

Jarðfeingi shall receive applications for Licenses for Exploration and Production of Hydrocarbons by
12 November 2019 at 2 pm.

The applications shall be submitted to:

Jóannesar Paturssonargøta 32-34
FO-100 Tórshavn
Faroe Islands

Or sent to the email address:
If you wish to upload large files on a FTP server, please contact and we will provide a link.

Application fee:

For the handling of each individual application, an application fee of DKK 20.000 is due upon submission.
The fee shall be paid, free of charge, to:

P/F Bank Nordik
acc. no 6460-2600058
IBAN FO31 6460 0002 6000 58
(ref. FEE 142571-2520-0700-0100)
Føroya Gjaldstova
Kvíggjartún 1
FO-160 Argir
Faroe Islands
A copy of the receipt shall be attached to the application

Fiscal Terms

Profitability (Internal rate of return – post normal hydrocarbon income tax)

Company income tax:
27% of Taxable Income
– Costs
– Investments (30% depreciation/year)
18% Tax on Company Income from other activities

Rate-of-Return based (ROR)
– Higher return, higher special tax
Calculation basis: Cash flow
Special Tax Rates:
– ROR < 20% 0% Special Tax
– ROR < 25% 10% Special Tax
– ROR < 30% 25% Special Tax
– ROR > 30% 40% Special Tax

– Costs and investments
– Company Income Tax
– Not interest

Ring-fence (field basis)