American ships with drilling rigs and other heavy equipment may soon be heading towards Greenland's untouched wilderness to search for oil. This is reported by Danwatch, which can document that an American-owned company has decided to raise capital on the US stock exchange for a large oil project in East Greenland.
Greenland otherwise said no to new oil projects in 2021 due to climate and environmental consequences. But the company Greenland Energy has acquired three valid oil licenses in Greenland, which were granted before the ban, through a takeover of a British company.
If all goes according to plan, Greenland Energy, with the help of hedge funds and other investors, will next week have access to 500 million kroner through a stock exchange listing, earmarked for the oil project, which is located at Scoresby Sund – the world's largest fjord system in East Greenland.
According to the prospectus, the money will finance a five-kilometer-long connection from a temporary port through the wilderness to an area where two oil wells, equipment and temporary housing for crews will be built.
CEO expects up to 13 billion barrels of oil
In an interview on March 17 in connection with the stock exchange listing, the company's CEO, oil veteran Robert Price, said that he expects the area to contain up to 13 billion barrels of oil, and that the project is so extensive that it “could change Greenland in the same way that oil has changed Norway and Alaska”.
The assessment is based on data collected by the Geological Survey of Denmark and Greenland (GEUS) - and if it is correct, the oil field is equivalent to some of the largest oil fields in the world.
Gorm Winther, professor emeritus at Aalborg University and former professor at the University of Greenland, fears that any income from the project will not accrue to the Greenlanders:
Expected oil deposits in Greenland and strategic raw materials constitute a decisive factor in Donald Trump's Arctic strategy, he says.
Right now, the company - as part of the license conditions - must formally apply and meet a number of requirements before they can start the exploration. But until they do so, Greenland cannot stop the drilling under the current rules. Greenland's Minister of Natural Resources, Naaja Nathanielsen (IA), says:
“It is a deliberate act that the Greenland Government has not revoked already granted permits for exploration and exploitation of oil and gas, as this would otherwise mean expropriation and a claim for compensation, she says.
Danwatch has tried to get answers to a number of questions from Greenland Energy Company. They have not returned our repeated inquiries.
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