The maritime boundary between Denmark’s Faroe Islands and Iceland was first established through a bilateral agreement that was reached in 2007. The exclusive economic zone boundary was based on the median line plotted between the archipelagic baselines of the Faroe Islands and Iceland. The boundary begins at the northern intersection of the two States’ 200 nautical mile exclusive economic zone limit and ends at the southern intersection. This exclusive economic zone boundary has a total length of 379 nautical miles, and it contains a “special area” that was established as part of the 2007 Agreement, which grants fishing and scientific research rights to both States therein. 

Denmark (acting on behalf of the Faroe Islands), Norway, and Iceland agreed to a framework for delimiting their overlapping extended continental shelf claims beyond 200 nautical miles in the area known as the “Banana Hole” during trilateral discussions in 2006. The agreement reached between Denmark and Iceland was finalized in 2019. The Denmark–Iceland portion of the extended continental shelf boundary extends for 117 nautical miles.