A long dispute over the maritime boundary between the U.K. and the Faroes Islands has been resolved, clearing the way for licensing of the area for oil and gas exploration.
The agreement was due to be signed by the U.K., Faroese, and Danish governments in the Faroes capital of Tors- havn during a May 18-19 visit. Fishing considerations have been a major factor in delaying the deal.
The U.K. Foreign Office said, "The agreement will make it possible for both parties (U.K. and Denmark-the Faroes are a Danish dependency) to hold petroleum licensing rounds as soon as practicable."
The U.K. Department of Trade and Industry is keen to offer licenses along the border, which runs along the northwestern extent of the West of Shetland play, where the Schiehallion and Foinhaven oil fields have estimated reserves amounting to 760 million bbl of oil and exploration interest is high.
The Faroese Petroleum Administration also has plans under way to offer its virgin continental shelf area to international exploration companies (OGJ, Mar. 16, 1998, p. 42).
The boundary agreement is expected to be in place by the end of the summer, after which both the U.K. and Faroese governments are expected to open licensing rounds as soon as possible.
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