To stimulate petroleum exploration around Greenland a new licensing policy was developed in 1999 in order to increase the possibilities of making discoveries which can be exploited commercially within the coming years. The policy provides a framework, licensing procedures, and a timetable for future oil and gas activities in Greenland.
The policy was developed to take account of possible low oil prices in the future and with a view that the first offshore exploration well in more than 20 years would be drilled in the year 2000 in the Fylla licence area. In order to improve understanding of the hydrocarbon potential of West Greenland before the planned licensing round in 2001 it was considered important that the industry acquired additional seismic data in the seasons 1999 and 2000.
For the next few years, exploration is planned to be concentrated in the areas off West Greenland south of 71°N and in the onshore areas of Disko–Nuussuaq, West Greenland and Jameson Land, East Greenland. Priority has been given to these areas because of their hydrocarbon potential and because of the environmental, safety and technological conditions encountered there.
Licence round offshore West Greenland
It is expected that the opening date for the licensing round offshore West Greenland between 63°N and 68°N will be late 2001.
It is planned that the deadline for applications will probably be 90 days after the announcement of the round.
Specific terms and conditions pertaining to the licences will be announced well before the closing date for applications. Click to get the terms for the Fylla (364kB) and Sisimiut-West licences (286kB).
Open door regions
In the areas between 60°N and 63°N and between 68°N and 71°N offshore West Greenland and for the onshore areas on Disko–Nuussuaq in West Greenland, and Jameson Land in East Greenland, an open door procedure is in force. Applications will be considered each year during the period 1 October to 31 May. Specific terms (19kB) for the West Greenland areas are available together with a model licence (196kB).
The KANUMAS preference areas
The KANUMAS group consists of six major oil companies: BP, Exxon, Japan National Oil Company, Shell, Statoil and Texaco with Nunaoil as carried partner and operator. The group holds a preferential position in the areas covered by the seismic surveys which were acquired by the group in the period between 1991 and 1995.
Further technological, geological and environmental investigations and studies are needed in these areas to make exploration and exploitation off North-West and North-East Greenland possible in the future.