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Energy & Resources

Greenland warns US firm over unauthorised drilling gear

Greenland's government has warned Texas-based Greenland Energy after the company unloaded drilling equipment without authorisation on the east coast of the autonomous Danish territory.

The company unloaded the gear last month in Nunap Qeqqa, also known as Jameson Land. The equipment is now stored in a hangar at Nerlerit Inaat Airport, near Ittoqqortoormiit, the closest settlement to the licence area.

Greenland's government said all future logistical arrangements must be notified to and approved by the mineral resources authority before they are carried out.

Greenland Energy told Danish media in July that it believed authorisation to unload and store the equipment was only required inside the oil exploration licence area. Managing director Roderick McIllree told Danish public broadcaster DR that it was a mistake and would not be repeated.

The case has drawn attention because the company is seeking approvals for oil exploration in Greenland at a time of heightened sensitivity over US President Donald Trump's interest in controlling the Arctic island. Greenland Energy says it has no connection to Trump's territorial ambitions.

Greenland imposed a moratorium on oil exploration and extraction in 2021, but Greenland Energy's licences were issued in 2015 and 2018 and remain valid. Activities still require specific permits, and Greenland's government has said required environmental and social impact studies have not yet been submitted.

Greenland Foreign Minister Mute Egede, who is responsible for natural resources, told KNR that he does not consider it realistic that the company can drill in the autumn. Greenland Energy said in a shareholder letter that it remains encouraged by progress toward the remaining drilling approvals.

KNR reported that more than 100 people in Ittoqqortoormiit demonstrated against the project in mid-July. The village has 325 inhabitants.

Uncertainty notes

It is unclear whether Greenland Energy will receive the remaining approvals needed to drill.
The quality and commercial value of any potential deposits have not been determined.
The timing of any drilling remains unresolved.

Source

AFP news report published on .

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