Towards a second licensing round
The next Faroese licensing round certainly is not going to be dependent upon the outcome of the parcelling out of the Hatton-Rockall Plateau.
It is always an issue of timing when deciding upon the launch of a licensing round. With large parts of the Faroe Shelf being extremely difficult to explore due to the problem of sub-basalt imaging and basalt drilling, the Faroese case is not only subjected to the normal ups and downs of the international oil industry. Prior to any licensing round a careful assessment of the maturity of a region with respect to exploration has to be performed in order to obtain an informed and realistic opinion on possible work commitments in future licenses.
This being said the Minister of Petroleum has told the administration to start planning for a second licensing round. Acting upon this message it is likely that the Ministry of Petroleum will consult with the industry next spring in order to assess the interest for an upcoming round. If the consultations indicate a level of interest, the next step is likely to be some sort of nominations later in the year.
When planning for a licensing round it must be remembered that a licensing round in the Faroe Islands cannot be initiated at the discretion of the Minister. It is a special feature of the Faroese licensing regime that Parliament has to approve the area on offer as well as the general terms and conditions of the licenses. Therefore, the time span from the moment work commences on a licensing round and to the point when the round is launched, is likely to be longer in the Faroes than in neighbouring countries.
Conclusion
In conclusion it must be said that the first 3 wells drilled in Faroese territory have lead to a variety of results. Disappointments and high hopes have been going hand in hand. The Marjun discovery made by Amerada and its partners in the Faroe Partnership apparently deserves closer attention, although the appraisal well drilled in UK sector this summer did not warrant a drill stem test of the hydrocarbons found. Furthermore, the Agip well to be drilled next summer will give further information as to the potential of the lower tertiary formations.
In future licensing rounds some deepwater areas are likely to be included but it must be reiterated that the full potential of the Faroe Shelf is only released as and when exploration wells are drilled on the Faroe Platform itself.
