Greenland Energy Co., an American oil firm with links to former President Donald Trump, has significantly delayed its drilling plans in Greenland after receiving a "strong warning" from the Arctic island's government. The company had prepared to ship $60 million worth of drilling equipment from Canada in September, aiming to start operations in October in the Jameson Land Basin. However, Greenland's Department of Industry and Minerals stated that Greenland Energy and its joint venture partner, 80 Mile, lacked the necessary approvals from the mineral resources authority to begin operations.
The delay pushes the targeted permit timeline to winter 2027. Greenland Energy's CEO, Robert Price, acknowledged the need for patience and flexibility when operating in the Arctic. The exploration rights, initially held by British company 80 Mile, were transferred to Greenland Energy in exchange for funding exploration, with Greenland Energy set to retain a majority of the proceeds. However, this transfer also requires government approval, which Greenland Energy had not yet secured.
Shares of Greenland Energy closed over 44% lower following the announcement, while 80 Mile shares were down more than 20%. The Jameson Land Basin, described by Greenland Energy as one of the last highly prospective yet undrilled basins globally, is believed to hold as much as $1 trillion of crude oil. However, previous exploration efforts in Greenland, primarily offshore, have been unsuccessful, with $100s of millions wasted. Analysts also highlighted significant logistical challenges due to the basin's remote location.
