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Ghexis newsletter No.13 - May 1998

 
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Newsletter No. 13 - May 1998
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Headlines:

1: Mineral Resources Administration to be transferred to the Greenland Home Rule Government
2: New application from a group headed by Philips Petroleum Greenland Ltd.
3: grønArctic releases Nuussuaq licence - but lots of encouragement for future exploration
4: The KANUMAS Project
5: The physical environment off West Greenland
6: West Greenland activities planned for the summer of 1998
7: Greenland meets the exploration industry on the Web


Mineral Resources Administration to be transferred to the Greenland Home Rule Government from July 1, 1998

On January 8, 1998 the Danish Government and the Greenland Home Rule Government signed an agreement on the transfer of the administration regarding mineral resources in Greenland to the Greenland Home Rule Government.

The transfer of the administration is planned to be effected as of July 1, 1998. The transfer will cover both minerals and hydrocarbons. The transfer will imply that the Mineral Resources Administration for Greenland (MRA), which is an agency under the Danish Ministry for Environment and Energy, will be abolished and a new Bureau of Minerals and Petroleum (BMP) will be established under the Greenland Home Rule Government to handle the present tasks of MRA.

The transfer implies that the political responsibility for the administration, including the granting of licences under the Mineral Resources Act for Greenland, which presently lies with the Danish Minister of Environment and Energy, after the transfer will rest with the Greenland Home Rule Government. Thus, the basic principle of the transfer is that the roles for the two parties within the Mineral Resources System for Greenland will be reversed.

Apart from the transfer of the administration the Mineral Resources System for Greenland will remain unchanged. This includes 

  1. the joint decision-making competence of the two parties implying that all fundamental decisions, including the granting of licences under the Mineral Resources Act, are made jointly by the two parties;
  2. the Danish/Greenland Joint Committee on Mineral Resources in Greenland; and
  3. the division between the two parties of public revenues from mineral resources activities in Greenland.

Likewise, the contents of licences granted under the Mineral Resources Act will remain unchanged.

Implementation of the transfer has required the passing by the Danish Parliament of amendments to the Mineral Resources Act for Greenland.

The Bill on the transfer was endorsed by the Greenland Parliament in February and was passed by the Danish Parliament early May 1998.

The texts of the agreement (of January 8, 1998) and the Bill (of March, 1998) are available from MRA in Danish and in unofficial English translations.

Until July 1, 1998 all tasks in relation to applicants and licensees will continue to be handled by MRA, and all inquiries regarding licences under the Mineral Resources Act are to be made to MRA as usual.

From July 1, 1998 all inquiries regarding mineral resources in Greenland should be directed to the Greenland Home Rule Government's Bureau of Minerals and Petroleum (BMP) at the following address, etc.:

  • Bureau of Minerals and Petroleum
    Box 1015
    3900 Nuuk.
    Telephone: (+299) 34 68 00
    Telefax:      (+299) 32 43 02

Enquiries regarding geological matters should continue to be directed to the Geological Survey of Denmark and Greenland (GEUS) at the usual address.

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New application from a group headed by Philips Petroleum Greenland Ltd.

Most of the offshore areas in West Greenland south of 70030'N are under an open door policy as regards hydrocarbon exploration. This means that applications for exclusive exploration licences for these areas may be submitted at any time with-
out a licence round.

On this basis an application for an exclusive exploration and exploitation licence for an offshore area in West Greenland was submitted to MRA in December 1997.

The application was submitted by a group consisting of Phillips Petroleum Greenland Ltd. (operator), Statoil Efterforskning og Produktion A/S and Dansk Olie og Naturgas, Grønland A/S.

The application has been discussed between the group and MRA and in meetings of the Danish/Greenland Joint Committee on Mineral Resources in Greenland.  It is expected that a licence could be granted during the summer of 1998.

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grønArctic releases Nuussuaq licence - but lots of encouragement for future exploration

In 1996, the first conventional onshore oil exploratory well in Greenland was drilled on the south-west coast of Nuussuaq to a depth of 2,996 m by a group with grønArctic resources inc. as operator.

Prior to the exploratory well, the group had acquired airborne geophysics and had drilled 4 slimcore drill holes on south-western and north-western Nuussuaq to depths ranging from 400 to 900 m.

For 1998, the grønArctic group had planned a regional seismic program covering areas on south-western and central Nuussuaq. However, as the group could not secure financing for the planned exploration activities for 1998 the licence was surrendered in late April 1998.

Therefore, the entire onshore area of Nuussuaq-Disko-Svartenhuk is now "open ground" and may be applied for by other parties. The onshore area is covered by the open door policy which also applies to most of the offshore area in West Greenland south of 70º30'N.

At the termination of a licence, the reports and data which have been submitted by the licensee to MRA under the terms of the licence become non-confidential. This also applies to the grønArctic licence.

The exploration by grønArctic during 1994-96 was intensive and resulted in many new data on this frontier area. Together with the substantial work in the area by the Geological Survey of Denmark and Greenland (GEUS), the grønArctic exploration has led to a significant upgrading of the petroleum potential of this area. New information on oils, source and reservoir rocks and a structural style with large rotated fault blocks is encouraging for future exploration. Information packages with data and results form the grønArctic and GEUS work, respectively, will be prepared by GEUS for distribution to the industry in the near future. Further information can be obtained from GEUS. The packages will be described in detail in the next issue of Ghexis.

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The KANUMAS Project

The offshore areas in North-West Greenland (north of 70º30'N) and North-East Greenland (north of 68º00'N) have during the period 1990-95 been covered by a non-exclusive prospecting licence to the KANUMAS group (BP, Exxon, JNOC, Shell, Statoil, Texaco and Nunaoil as operator). The seismic data acquisition in these areas has been completed and the data are for sale from Nunaoil.

In accordance with the terms of the prospecting licence, the KANUMAS group has preferential rights regarding those areas where seismic data have been acquired.These areas were indicated on a map in Ghexis no. 12 from October 1997.

MRA has recently notified the companies participating in the licence that the present position of the Danish/Greenland authorities as regards the KANUMAS areas off North-West and North-East Greenland can be summarised as follows:

The Danish/Greenland authorities have decided that on the existing basis no licensing rounds are to be initiated or prepared, either in North-West Greenland or in North-East Greenland, at the present time.

The matter of initiation of future licensing rounds for these offshore areas will be assessed again by the authorities when substantial new data are present, however by 1999 at the latest.

It is furthermore envisaged that the authorities will wish to involve the KANUMAS companies in consultations with a view to analysing how the technological and other substantial obstacles for hydrocarbon exploration in especially North-East Greenland can be overcome. Also other parties, who may be capable of contributing in this respect, may be involved in such consultations.

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The physical environment off  West Greenland

As a result of increased interest and activity in offshore West Greenland, the MRA commissioned the Danish Meteorological Institute to prepare a report dealing with physical environmental conditions in this offshore area.

The completed two part report entitled "Physical Environment of Eastern Davis Strait and Northeastern Labrador Sea" is now available.  In addition, MRA has also completed an overview report that highlights the findings of the latest report.  Both reports can be obtained from MRA.

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West Greenland activities planned for the summer of 1998

The summer of 1998 will be an active season in Greenland. Most activities focus on preparation for the first Fylla well in 1999 and exploration thereafter

Fylla site surveys

The first well in the Fylla licence (operated by Statoil) is planned for 1999. In preparation for this a site survey will be acquired using shallow seismic, side scan sonar and sea bed sampling.

New seismic acquisition

Fugro-Geoteam AS in association with Danpec A/S will acquire approximately 3000 kilometres of new non-exclusive seismic data around the Fylla license during the summer of 1998.
In addition to the new acquisition, a project has been started to reprocess as much as possible of the 40 000 km of seismic data acquired offshore West Greenland in the 1970s. Processing will take place as soon as access to the old field tapes is obtained. It is planned to complete the processing during the summer of 1999.

  • Contacts for further information:
    Fugro-Geoteam AS , Jan Lutro / Zyg Sarnowski  Phone: +47 22 13 46 00
    Danpec A/S, Jens Chr. Olsen     Phone: +45 38 74 59 50

Nunaoil A/S will continue acquisition of new seismic data offshore West Greenland north of the Fylla area, where they believe there is a possibility for play types different to those in the Fylla area. Nunaoil will use the vessel Thetis which has been upgraded with a Syntron acquisition system (SYNTRAK 480-24) and the data will be acquired using a minimum streamer length of 4500 m and an airgun array of at least 4100 cu. inch.

  • Contact for further information:
    Nunaoil A/S, Lars Beksgaard     Phone:+45 33 32 29 32

New field work

GEUS  and collaboration partners will continue field work in the Disko–Nuus-suaq region in the summer of 1998 to investigate and extend  the many encouraging finds of oil seeps in 1996–97 (see Ghexis no. 12, October 1997). In addition to systematic "oil hunting" along the coasts of Disko and Nuussuaq, the field work will concentrate on structural analysis of the volcanics on the western part of Nuussuaq and sedimentological and biostratigraphic studies of the Upper Cretaceous and Paleocene marine sediments on Nuussuaq

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Greenland meets the exploration industry on the Web

In January 1998  MRA introduced its home page which includes access to MRA's licence database. The database contains detailed information on petroleum and mineral licences in Greenland including information on licence areas defined by co-ordinates and indicated on maps. The licence database includes :
 
   Licences in force and applications  being  processed

The licence database is easily accessed from the headings hydrocarbonS or minerals  through the "Map of Greenland" or the "Database Inquiry" boxes.

The home page also provides information on licence terms and application procedures, as well as exploration history, newsletters, news releases, reports etc.

This service on www.mra.dk provides direct access to relevant information on hydrocarbon and mineral resources in Greenland.

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BUREAU OF MINERALS AND PETROLEUM (BMP)
Government of Greenland, P.O. Box 930, DK-3900 Nuuk, Greenland
Tel.: +299 34 68 00, Fax.: +299 32 43 02, E-mail: bmp@gh.gl
Homepage: www.bmp.gl

GEOLOGICAL SURVEY OF DENMARK AND GREENLAND (GEUS)
Øster Voldgade 10, DK-1350 Copenhagen K, Denmark
Tel.: +45 38 14 20 00, Fax.: +45 38 14 20 50, E-mail: geus@geus.dk
Homepage: www.geus.dk

ISSN 0909-0630 



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Last modified: 10 March 2002 © GEUS
GHEXIS is published by GEUS in co-orporation with the Bureau of Minerals and Petroleum, Government of Greenland
GHEXIS publiceres af GEUS i samarbejde med Råstofdirektoratet, Grønlands Hjemmestyre
GHEXIS Newsletter No. 13