Greenland delays US-backed oil drilling project

Greenland’s government has postponed planned oil drilling in eastern Greenland, saying the approval process cannot be completed in time, DR reports. The decision affects both drilling and preparatory activities planned for winter 2026 and 2027.

The project is focused on the settlement of Ittoqqortoormiit, where the American oil company Greenland Energy Company plans to search for oil. It had hoped to begin work in October.

In a statement, Greenland’s government said its assessment was that the planned drilling activities could not be carried out during the coming winter. The Department of Business and Mineral Resources had raised concerns about the project’s tight timetable during a meeting with White Flame Energy A/S, the company that holds the licences.

It remains unclear when the necessary approval could be granted. The companies involved say they cannot receive permission to drill before next year at the earliest.

80 Mile, which owns White Flame Energy, said it was disappointed but remained committed to the project.

“Although we are disappointed that the timetable for the Jameson drilling programme has been affected, the company remains fully committed to further developing the project, which has very promising potential,” 80 Mile chief executive Rod McIllree said in a statement.

White Flame Energy is the Greenlandic subsidiary and official legal licence holder for three oil exploration permits. British mineral resources company 80 Mile acquired it in 2024. Greenland Energy Company is the American partner, investor and operator responsible for financing the exploration and carrying out the drilling.

Greenland halted all new permits for oil exploration and drilling in 2021, but several older licences remain valid. The companies still require a number of specific government approvals before they can proceed.

Drilling equipment was brought to the area only a few weeks ago, without the necessary government approval. Greenland’s self-rule government subsequently issued a strong warning and requested that it approve all future logistics connected with the project.

The plans prompted protests in several Greenlandic towns in July, including Nuuk. Greenland Energy’s shares fell after the government’s announcement.

Greenland Energy has also hired figures with ties to US President Donald Trump. The company had planned to involve television personality Dr Phil in promoting the project, but abandoned that plan in July. Danwatch has reported that Carol Craig joined the company’s management. She is chief executive of two US defence companies with contracts worth millions of dollars with the US military and the Pentagon.

Jeff Landry, described in the article as a close friend of the president and his special envoy to Greenland, recently said he expected oil could be extracted from Greenland’s subsoil as early as next year.