At the first meeting of the Nobel Committee after the February 1 deadline for nominations, the Committee's Permanent Secretary presents the list of the year's candidates. The Committee may on that occasion add further names to the list, after which the nomination process is closed, and discussion of the particular candidates begins. In the light of this first review, the Committee draws up the so-called short list - i.e. the list of candidates selected for more thorough consideration. The short list typically contains from twenty to thirty candidates.
The candidates on the short list are then considered by the Nobel Institute's permanent advisers. In addition to the Institute's Director and Research Director, the body of advisers generally consists of a small group of Norwegian university professors with broad expertise in subject areas with a bearing on the Peace Prize. The advisers usually have a couple of months in which to draw up their reports. Reports are also occasionally requested from other Norwegian and foreign experts.
When the advisers' reports have been presented, the Nobel Committee embarks on a thorough-going discussion of the most likely candidates. In the process, the need often arises to obtain additional information and updates about candidates from additional experts, often foreign. As a rule, the Committee reaches a decision only at its very last meeting before the announcement of the Prize at the beginning of October.
The Committee seeks to achieve unanimity in its selection of the Peace Prize Laureate. On the rare occasions when this proves impossible, the selection is decided by a simple majority vote.
As a side note, when did Sky News become top of search results all of a sudden?
I watched Sky Channel back in the 80s (their morning show taught me how to pronounce "recipe"!), before it became Sky One and you had to pay extra to get it (IIRC) and hadn't thought about Sky for almost 30 years, when suddenly they start appearing on the internets as a news source.