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 FAEROES
ISLANDS
North West Europe
The North Atlantic shelf overlies a collection of passive
margin basins, which include the Faeroe-Shetland basin, adjacent to the
producing West Shetlands basin in the UK.
The Faeroes have no production at present but drilling in
progress will determine whether the region will yield oil. In 1999 an
agreement was signed by the UK and Faeroes governments covering the
median line between the two countries and the ownership of the so-called
“white zone.”
 The Faeroe Islands, which is a Danish dependency, has
sovereignty over around 20% of the North Atlantic Margin area. The
layers of basalt that cover the Faeroe’s shelf blanketing the rock’s
response to seismic energy dog seismic exploration. However, by analogy
with the UK shelf, there is potential for oil and gas discoveries
matching those of the West Shetlands.
In 2000 a number of companies purchased non-proprietary
seismic data, including the major ones involved in the UK and Norway.
There were 23 applications from 17 companies for an area of around 7,000
km² (50% of the area available) in the First Licensing Round. Seven
blocks were awarded on 17 August 2000.
Four of the commitment wells were drilled from 2001 in
the small Judd basin where basalts are thin. The first two were dry but
the third, Marjun, drilled by Amerada Hess, encountered a 170m light oil
column in the Lower Palaeocene. However, this interval was not tested due
to bad weather.
The fourth well had oil shows. It will take further
drilling in other areas to determine whether the region will yield oil.
A 2nd licensing round opened in August 2004. We forecast production
perhaps beginning in in 2010/2011.
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