OREANDA-NEWS. June 05, 2014. Icelandic TV station RUV said oil and gas company Eykon Energy will start exploring for oil in the Dragon Zone off the coast of Iceland.

The Iceland-based company will work with China National Offshore Oil Corporation (CNOOC) in the summer in preparation for drilling. Hei?ar Mar Gu?jonsson, chairman of the board at Eykon Energy, said drilling could take place within four years, Iceland Review reported.

In addition to CNOOC and Eykon Energy, Norway state-owned oil company Petoro may also join in the search as it holds 25 percent interest in the third license for oil exploration and production in the Dragon Zone, also called the Dreki Area, according to Iceland's National Energy Authority Orkustofnun.

Norway is granted the right to have up to 25 percent share in licenses within a part of the area in Iceland thanks to an agreement between the two countries dating back to 1981, according to Orkustofnun.

The remainder of the license is held by CNOOC International subsidiary CNOOC Iceland with a 60 percent share and Eykon AS subsidiary Eykon Energy with a 15 percent share. Oil production in the Dragon Zone could start in as soon as seven years.