The Greenlandic authorities have postponed drilling by an American oil company
The Greenlandic authorities have postponed the start of drilling operations by the American company Greenland Energy in the remote region of Jameson Land in the eastern part of the island. The government stated that it would be impossible to complete the regulatory procedures and obtain the necessary permits by the planned start date.
According to The Guardian, during negotiations, Greenlandic officials expressed concern that the timeline for assessing the project’s environmental and social impacts was too tight. Officials must decide whether to allow drilling within protected wetlands that are home to rare birds and musk oxen, on which local hunters depend.
According to the government and the company, drilling could begin as early as the winter of 2027. Greenland Energy CEO Robert Price previously stated that a ship carrying 300 containers of drilling equipment was scheduled to depart from Canada for Greenland in September, and the first well was planned to be drilled the following month. In July, the company delivered the equipment to shore without permission, after which it received a stern warning from the government.
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Price stated that Greenland Energy intends to continue exploration responsibly, in accordance with Greenland’s regulatory procedures and in full cooperation with its authorities. According to him, the company will use this time to refine its plans and strengthen ties with local communities, partners, and authorities.
The delay contradicts the forecast made by U.S. President’s Special Envoy to Greenland Jeff Landry, who stated in May that oil production could begin in about 10 months. Greenland Energy’s British partner, 80 Mile, attributed the delay to the need to complete the process of obtaining permits and regulatory approvals. 80 Mile holds exploration licenses issued before Greenland suspended the issuance of such licenses in 2021 due to the climate crisis.
Greenland Energy was founded last year and announced plans to allocate $60 million raised from investors toward drilling in exchange for a controlling stake in the project. Following the announcement of the delay, the company’s shares, which trade on the New York Stock Exchange, fell by more than a third.
