6.250
%
Negative
61
mm boe
0
%
While Iceland has not formally ruled out exploration licences, limited appetite from the government and explorers has left no interest in the Dreki area. Outlook maintained because there has been no change in government appetite. Outlook: Negative. Risk premia unchanged at 6.25%.
October 7, 2026
Europe - North West
mm bbl
bcf
Northern Europe, island between the Greenland Sea and the North Atlantic Ocean, northwest of the United Kingdom.
Concession
Petroleum activities are subject to general Icelandic laws and regulations on taxation, environmental protection, health and safety. Hydrocarbon accumulations are owned by the Icelandic state, and a license from the National Energy Authority (Orkustofnun, or NEA) is required for prospecting and E&P of hydrocarbons. The NEA is also responsible for monitoring hydrocarbon prospecting and E&P activities and for archiving the data generated by such activities. The NEA coordinates the response of Icelandic authorities to requests from oil companies for information regarding petroleum activities.
Iceland is a stable, low-risk democracy outside the EU, although the government plans a referendum on resuming accession talks. US and UK guidance cite transparency, strong rule of law and a small, high-cost market. Iceland has no hydrocarbon production, and its Dreki area licences were relinquished. Almost all electricity comes from hydropower and geothermal, supporting aluminium smelting and data centres.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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