Greenland blocks oil drilling plans after unauthorised equipment landing

Greenland’s authorities have halted plans by US oil company Greenland Energy to begin drilling in eastern Greenland this autumn, while the government’s top official for mineral resources has sharply criticised the company’s conduct, DR reports.

“That is not the way to operate in Greenland,” said Jørgen Hammeken-Holm, head of the Department of Mineral Resources.

The company hopes to extract billions of barrels of oil from the subsoil in eastern Greenland. However, Greenlandic authorities said on Wednesday that the necessary permits could not be issued before next year.

The decision followed a dispute over containers carrying equipment for oil exploration. Greenland Energy’s close partners had landed the equipment in eastern Greenland without permission from the authorities.

“We will not accept this,” Hammeken-Holm said.

Hours after the landing became known, Greenland’s Department of Mineral Resources issued a strong warning, making clear that the incident must not happen again.

Greenland Energy apologised and said the landing had resulted from a misunderstanding. Hammeken-Holm rejected that explanation and said he believed the company had acted deliberately.

“There was nothing to misunderstand. The permit was missing,” he said. “It is a signal of how the company otherwise relates to the authorities.”

Controversial oil exploration

The US-led oil exploration plans have attracted considerable attention. Greenland Energy wants to drill in Nunap Qeqqa, one of Greenland’s most remote eastern regions, also known as Jameson Land.

The company says the area could contain up to 13 billion barrels of oil. Several experts have questioned whether that estimate is realistic.

In the spring, the company’s US director, Robert Price, visited the nearby town of Ittoqqortoormiit by helicopter. The town has just 328 residents, and Price held a public meeting in its community hall.

According to Danwatch and TV 2, representatives of a local committee initially demanded benefits including a heated swimming pool and an expansion of the town’s sports hall in exchange for supporting the oil exploration. Broad opposition has since emerged, with demonstrations held in several Greenlandic towns.

A local hunting officer later told KNR that local hunters had rejected a monthly salary of 100,000 kroner to guard the drilling sites, including by keeping polar bears away.

Arctic Command could be involved

Greenland Energy and its partners have nevertheless said they are preparing to send 300 containers and a drilling rig to Greenland soon.

Hammeken-Holm made clear that Greenland’s authorities would take firm action if the company again acted without permission.

“If they try to do that, I believe we have someone who can stop it,” he said. “How that would happen in practice is something we are currently clarifying.”

Hammeken-Holm has previously told KNR that the Danish defence could become involved through the Arctic Command.

He declined to answer further questions from DR about deploying the Arctic Command against the US oil exploration effort, saying the matter involved security and foreign policy issues.

Trump repeats message about Greenland

US President Donald Trump has repeatedly said that the United States will take over Greenland.

About a day and a half after Greenland’s self-government warned against landing equipment without permission, Trump posted another message on social media repeating the same position. The manipulated image showed a giant Trump emerging behind a mountain ridge and looking down at a snow-covered Greenlandic town.

Official calls claims misinformation

Hammeken-Holm said public confidence in the oil exploration project was currently very low. He has worked in the field since 1998 and said he had never experienced anything similar.

He said the public discussion had vastly exaggerated the prospect of an imminent oil boom, calling the claims “misinformation”.

“I think the impact on the local population is significant. It is confusing, and it is difficult for them to know what is true or false,” he said.

Greenland stopped issuing new oil and gas permits in 2021. However, the existing permits for Nunap Qeqqa were granted before the decision and therefore remain valid.

The permits are formally held by Greenlandic company White Flame Energy A/S, which is owned by UK-based company 80 Mile.

US oil company Greenland Energy is financing the project and has presented it publicly.