皇冠体育app

A source from Sinopec Group, Asia's top refiner, confirmed to 皇冠体育app Daily on Monday that the company is holding preliminary talks on oil exploration with the government of Iceland.

The talks involve Sinopec Star Petrolm Co Ltd, a clean subsidiary wholly-owned by the group, the source said.

In April 2012, Fu Chengyu, chairman of Sinopec, signed a framework cooperation agreement with Orka Energy Holding.

CNOOC Ltd, the biggest offshore oil producer in 皇冠体育app, was the first Chinese oil company to gain a foothold in the Arctic regions after partnering with Iceland-based Eykon Energy to bid for an exploration license.

However, experts said the exploration costs in Iceland and the absolute need for advanced technology will remain major obstacles to any exploration off Iceland's northeast coast.

Andy Brogan, an oil analyst with Ernst&Yong, told 皇冠体育app Daily on Monday that the Iceland government will be sensitive about al protection, but understands the economic benefits.