Two firms apply for exploration rights in Iceland-paper

REYKJAVIK, May 18 (Reuters) - Iceland has received two applications in its first tender offering exploration rights off its potentially resource-rich northeast Atlantic coastline, an Icelandic newspaper reported on Monday.

Iceland's Ministry of Industry received applications from Norwegian oil group Aker Exploration (AKX.OL: Quote, Profile, Research) and Sagex Petroleum, in conjunction with Lindir Petroleum, Icelandic daily Morgunbladid reported on its website.

"This is a big day in the history of Iceland's energy resources utilisation," the paper quoted new Industry Minister Katrin Juliusdottir as saying.

The two applicants are seeking permits to explore four different parts of the "Dragon Zone", off the northeast coast of Iceland, it said.

The application process will likely last until October.

Iceland is recovering from an economic meltdown last year when its banks and currency collapsed due to the global financial crisis.

The volcanic island, which benefits from vast, natural sources of energy, has planned to offer 100 offshore oil and gas licences this year northeast of the island, a geographic area similar to regions off Greenland where hydrocarbons have been found.

Last year, Sagex estimated the zone held about 20 billion barrels of oil and gas. (Reporting by Omar Valdimarsson via the Stockholm Newsroom)