Iceland President to Invest Potential Oil Bonanza in Wealth Fund

From Bloomberg Business Week

By Eduard Gismatullin

Iceland plans to set up a national wealth fund to safeguard revenue from potential oil discoveries as it opens up the island nation to exploration, President Olafur R. Grimsson said.

Faroe Petroleum Plc (FPM), Valiant Petroleum Plc (VPP) and Petoro AS will be the first foreign explorers to search Icelandic waters for oil and gas. They are betting that the geology matches that of the Shetland Islands, where BP Plc and Total SA are drilling, according to Faroe.

“Since we look at this resource as a national wealth, there will be a national wealth fund that would be established, but this is more of a general policy at this time,” Grimsson said in an interview in London this week. Explorers “have to do their work. It will take some years.”

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