Faroe Business Report — The International Review of Faroe Islands Industry and Trade - Faroe Business Report — The International Review of Faroe Islands Industry and Trade
Offshore Oil & Gas, Energy
With the Brugdan-2 exploration well poised to deliver some highly valuable data, and quite possibly something more, ExxonMobil teams up with Statoil and Atlantic Petroleum for the oil and gas hunt in the Faroe Islands.
On March 1 this year (2011) news broke that mighty ExxonMobil had agreed to farm-into three licenses operated by Statoil in Faroese waters. And, during the second half of the year, the pair are expected to spud the 8th offshore well ever drilled offshore Faroe [postponed to 2012].
The Faroes prepares to reduce imports of oil by dramatically decreasing dependence on fossil fuels for heating and power — betting on the islands’ vast, untapped energy resources: wind and ocean currents.
In its policy advice to the Ministry of Trade and Industry concerning the Faroe Islands’ move toward renewable energy, Jarðfeingi (Faroese Earth and Energy Directorate) has alluded that conditions for generating power from wind and ocean currents present “virtually unlimited potential.”
FOÍB remains committed to promoting the oil and gas industry in the Faroes encouraged by the government’s new open-door policy and the growing activities in areas surrounding the Faroe Islands.
More than a decade since the first well was drilled offshore Faroe by Statoil, Faroes Oil Industry Group (FOÍB) chairman Nils Sørensen remains highly optimistic, despite no clearly commercial hydrocarbons finds having been made to date.
2010 saw profound changes for Atlantic Petroleum, which went in one year from being a company still in its build-up phase to a financially strong E&P company looking for new opportunities in the oil and gas business.
Reporting revenues of 422.5 million dkk (56.7m eur) and an operating profit of 147m dkk (19.7m eur), Faroese oil and gas independent Atlantic Petroleum emerged transformed from 2010. With revenues almost doubled and bank debt dramatically reduced, the financial position had been turned on its head following a period of uncertainty.
As part of a renewal plan initiated in 2006 to modernize and add tonnage to its now 14-strong fleet of offshore support vessels, Thor is set to order two to three new vessels for its Offshore Services division in the near term.
Thor, the Faroe Islands’ leading vessel operator in the offshore services business and a significant player in the country’s fishing industry, is looking to have two or three new offshore support vessels built in the near future. According to the company’s management, the investments for the Offshore Services division will be designed to meet the rising international and environmental standards demanded by clients, as well as to increase fleet tonnage.
Offering a comprehensive range of goods and services in Faroe, Runavík’s Atlantic Supply Base has taken over maritime agencies to act as the offshore oil and gas industry’s first point of contact on the Faroese Continental Shelf.
It’s been a decade since the Faroe Islands’ first and only supply base for offshore oil and gas exploration was installed at Runavík on the island of Eysturoy. Since then, Atlantic Supply Base has been put to the test in seven drilled wells, passing with flying colors according to customers’ reports.
Welcome to the 2011 Edition of the Faroe Business Report
I’m proud to present the 6th edition of the Faroe Business Report. It’s a pleasure again this year to bring you this information package about the Faroese business scene in cooperation with leading businesses and government departments and agencies. I encourage you to take a read to check the state of affairs in the Faroese business environment and see what some of the main events are compared to last year or a few years back. I guarantee that there’s quite a few things that happen in the course of a single year — major change can occur very quickly in the Faroe Islands.
Búi Tyril
Publisher and Editor in Chief
Reach International Businesspeople with an Eye on the Faroe Islands
Sponsoring an article or placing an ad in the Faroe Business Report is a great way of accessing important market segments or conveying your values to key constituencies. For those keen to share with an international audience what their position in the Faroe Islands may mean, this yearly publication is recognized as the information medium of choice — an undisputed leader in its field.
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Sannførandi søgur byggja álit millum viðskiftarar og veitarar
Fyri bæði fyritøkur og stovnar er umráðandi at samskifta væl við umheimin, soleiðis at góð og hóskandi kunning altíð er tøk í rættari tíð. Hesin samskiftis tørvur ger seg altíð galdandi, eisini tá vit ikki beinleiðis síggja hann.
Hetta kemst millum annað av at broytingar við meir ella minni avgerandi ávirkan á virksemið hjá fyritøkuni ella stovninum kunnu henda óvæntað skjótt.