Arctic Oil Pipeline

Companies are queuing up to get a part of a potential oil boom in the waters off East Greenland.

There is great interest in extracting oil off the coast as interest in the first preliminary round of tendering for the area shows.

The Energy Ministry in Nuuk received 11 applications for exploration and exploitation of oil and gas in the Greenland Sea, according to Greenland self-government, Naalakkersuisut, in a press release. The deadline was December 15th.

The number of applicants shows that there is competition for several license blocks that were offered. Forthcoming is an extensive evaluation and negotiation process before the best applications are selected.

"The result of the licensing round is an important milestone in achieving a long-term and sustainable economy for Greenland," says Ove Karl Bertelsen, a member of Naalakkersuisut.

The area in the Greenland Sea covers 50,000 square kilometers. A total of 19 blocks were offered, ranging in size from 1752 to 3306 square kilometers.

The offering process is divided into two rounds. The first is the so-called Kanumas-Group consisting of Statoil-Hydro, BP, ExxonMobil, Chevron, Japan Oil, Gas and Minerals National Corporation - and the state oil company Nunaoil.

The second round is an open round where all companies are allowed to apply. The same terms and conditions apply for the two blocks.


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