Monday, 10 June 2013 22:36

China first entered the field in the battle for the Arctic

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Chinese oil company Cnooc with Icelandic Eykon Energy has applied for a license to develop and produce oil and gas in the Arctic shelf of Iceland.

Originally Eykon Energy was trying to get a license themselves. However, the National Energy Authority of Iceland rejected the application and ordered the company to find a partner.

As stated in the Icelandic authorities, the Chinese Cnooc agreed to the proposal of the authorities of Iceland and Eykon Energy to take part in the joint field development on the Arctic shelf of Iceland.

Choosing Eykon Energy in favor of the Chinese Cnooc explained by strengthening cooperation between the two countries. In April of this year Iceland has concluded with China Free Trade Agreement, becoming the first European country to sign such an agreement with Beijing.

According to the National Office of Energy of Iceland, the consideration of the joint application Eykon Energy and Cnooc will be completed this fall.

Note that this will be the first project of Beijing in the Arctic. China's long-standing interest in Arctic oil and gas reserves. In May of this year with the support of a number of Scandinavian countries, China, along with other Asian countries, was granted observer status in the Arctic Council.


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