Western Europe

A Peek Into Several European Countries

Norway and China Exploring Offshore Iceland


By: Devon Fasbinder

Norway is planning to team up with Chinese firms to explore offshore oil off the coast of Iceland, according to IceNews.

The Norwegian oil industry has expressed much interest in additional licensing which is allowed under a 1981 treaty between Norway and Iceland. Norway can seek the licensing from the Icelandic government or can seek outside partners. The treaty gives Norway the right to take a 25 percent stake in Iceland’s oil licenses. IceNews reports, “China has shown considerable interest in the region, said to contain some 90 billion barrels of oil according to a US Geological Survey. They signed a free trade agreement with Iceland in April.”

The Business Recorder reports China as a country keen to finding natural resources. It’s sights are set on the coast of Iceland because a US Geological Survey says the Arctic could hold roughly 90 billion barrels of oil equivalent. In April, the country signed a free trade agreement with Iceland to abolish tariffs. China signed a free trade deal with Iceland that abolished tariffs. The Business Recorder reports, “Iceland, still recovering from the 2008 financial crisis, is keen to develop its natural resources to help spur its economy.”


About devonfasbinderj2150

First time blogging for my Multimedia Journalism course at the University of Missouri!

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This entry was posted on November 29, 2013 by in Iceland, Norway.
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