Authorities in Greenland are forcing a US oil company linked to President Donald Trump to postpone drilling plans in the Arctic territory.
Greenland Energy Company (GEC), a Nasdaq-listed oil and gas firm based in Texas, said it was working towards acquiring a drilling permit for the winter of 2027 – a significant delay compared to an earlier date issued by Jeff Landy, US envoy to Greenland, who in May said production could begin within a year.
Greenland's government said in a statement on Wednesday: “The necessary regulatory process cannot be completed and the necessary approvals cannot therefore be obtained before the planned start of drilling.”
The government also said it had expressed concerns during talks that the schedule was too tight to determine the social and environment impact. It previously issued a “strong warning” to the joint venture for bringing equipment onshore without permission.
The project in question is based in Jameson Land, a “highly prospective” but undrilled basin on Greenland's east coast. GEC believes as much as $1 trillion of crude could be sitting underneath the 8,429-square kilometre project.
GEC chief executive Robert Price said in a statement: “Operating in the Arctic requires patience, flexibility and a long-term perspective. We will use this time to refine our plans and deepen relationships with local communities, strategic partners and relevant authorities.”
UK company 80 Mile, GEC's partner, told investors on Wednesday the “delay relates to the time required to complete the permitting and regulatory approval process and does not reflect any change to the Company's plans for Jameson”.
The British firm holds the licences for the Jameson Land basin through its wholly owned subsidiary, London-listed White Flame Energy. The licence was obtained before Greenland's government stopped issuing them in 2021, citing climate change.
Larry Swets, GEC chairman, has previously been reported to have access to Mr Trump's inner circle. Carol Craig, a US Navy veteran who is working on the America's Golden Dome missile defence system, is also a board member.
Citadel revealed in a filing with the Securities and Exchange Commission on May 6 that it had bought a 9.2 per cent stake in the company, while billionaire hedge-fund manager, Kenneth Griffin, owns 4.31 million shares, a 9.3 per cent stake.
Mr Trump recently renewed his interest in acquiring Greenland due to its location in the Arctic Circle being pivotal to US national security. Speaking at a Nato summit in Ankara, Turkey last month, the President said the semi-autonomous island should be “controlled by the United States, not by Denmark”.
Danish Prime Minister Mette Frederiksen rejected that suggestion. “It is a well-known position of the United States that it wants to own and take over Greenland. I hope that it is equally well-known everywhere that this is not going to happen,” she said during the summit.
