Since the last exploration drillings some years back, the Government of Greenland has been working on a new oil strategy that reduces geological uncertainty and allowing first movers a very attractive investment package.
While there has been silence around exploration of oil and gas in Greenland for some years, the Oil and Gas Department under the Government of Greenland has together with the national oil company, Nunaoil, and the Geological Survey of Denmark and Greenland (GEUS) collected all available geological data and conducted a resource assessment of Greenland. The analysis, which has been quality controlled by the Norwegian Petroleum Directorate, indicates several very promising areas, not least in the Baffin Bay area. The assessments and extensive data pack is available free of charge to petroleum exploration companies and can reduce the uncertainty in the exploration phase.
Reduction of government take
An attractive investment package is offered to companies, who engage in the current Open Door Procedures. A so-called first-mover advantage, which will remove the National oil company Nunaoil as carried partner and reduce both turnover and surplus royalties, will lower the government take to a very competitive level compared to other frontier regions. Estimates made for the Oil and Gas Department suggest that government take will be reduced from 51.3 to 40.6 pct.
By offering the new and comprehensive data pack, along with the reduced government-take model, the Government of Greenland is offering the best framework conditions ever offered in Greenland for companies who engage in the exploration for oil and gas.
High standards and focus on HSE
While Greenland is eager to attract new companies, there is absolutely no plan to compromise the safety or the environment. Greenland maintains some of the world’s toughest HSE standards as they are applied in the North Sea and Arctic regions. The regulation and the standards are well known to the industry, and has proven its worth for many years in the high North.
“With the new geological data pack and government take structure, and the very promising petroleum potentials, I believe that Greenland has become one of the most attractive frontier regions in the world for oil exploration” says Minister of Foreign Affairs and Energy, Steen Lynge.
“Environment and safety are of course of paramount importance for Greenland and an area where we will not compromise. Therefore, Greenland is taking inspiration from our artic neighbors on HSE standards and I am confident that the safety measures are broadly embraced by the industry as they successfully has applied them for several years” continues the Minister of Foreign Affairs and Energy, Steen Lynge.
Greenland plans to open up two new licenses areas on the East coast in 2021 and 2022.
For further information, please contact:
Head of Department – Rasmus Wendt +299 557212 email firstname.lastname@example.org