September 16, 2012 Leave a comment
Since my previous post in Dec, of 2011, Greenland Exclusive Economic Zone / Oil and Gas Licenses, not much has been seen in terms of eventful exploration results. In spite of this, Greenland is in continuance with it’s plans to open up Greenland Sea licensing blocks to applications.
Greenland Sea Licensing Rounds – 2012/2013
- Pre-qualification Round – Paying KANUMAS Group members (see below) will have the opportunity to apply for 11 special licensing blocks (view pre-qualification blocks on above map) ahead of non-members. Applications for pre-qualification as operators were due in March, of 2012. Those for exploration and exploitation are due in Dec, of 2012.
- Regular Round – Regular applications for the 8 remaining blocks, along with those not acquired in the pre-qualification round, will open in June, of 2013. Applications for pre-qualification as operators will be due in July, of 2013. Those for exploration and exploitation will be due in Oct, of 2013.
KANUMAS members were among those that partook in preliminary seismic studies for the regions of northwestern and northeastern Greenland starting in late 1989. Members included Exxon, Statoil, BP, Japan National Oil Corporation (JNOC), Texaco, Shell, and NUNAOIL A/S (Greenland’s state oil company). Project members were granted preferential position in any future licensing rounds comprising the northeastern region of Greenland. Today, paying members include ExxonMobil, Statoil, BP, Japan Oil, Gas and Metals National Corporation (JOGMEC), Chevron, Shell, and NUNAOIL A/S.
Exploration Progress and Results
- NUNAOIL – Greenland’s state oil company, NUNAOIL, currently holds a 12.5% minority stake in all but one of Greenland’s offshore hydrocarbon license operations. NUNAOIL holds an 8% minority stake in the southern Salliit license block.
- Cairn – Cairn has since completed it’s first phase of exploration for offshore Greenland. 8 exploration wells, seismic surveys, and other data were collected in 2011/2012. As of yet, only indications of oil seeps have been discovered in both western (Pitu) and southern Greenland license blocks. Despite $1.2 billion in losses from 2011 Greenland operations, chairman Sir Bill Gammell seems poised to press onward. Shareholders voted down Gammell’s share options package valued at £2.5 million as a result.
- Statoil – Since having received a 30% farm-out stake in Cairn’s Pitu license block in Jan, of 2012, (read Cairn spreads out the risk – Farms out shares to Statoil) seismic studies have been completed.
- Korean KORES – Sept, 10, 2012 – Although unrelated to offshore hydrocarbons, State Korean company has been looking at joint mineral operation opportunities in Greenland.
- Government of Greenland, Bureau of Minerals and Petroleum. Licensing Rounds in the Greenland Sea Area. [ONLINE] Available at: http://www.minesonline.com/sites/minesonlinecom/assets/public/Greenland/BMP_Invitation_letter_North_East_Greenland.pdf. [Last Accessed 15 Sept 2012].
- Government of Greenland, Bureau of Minerals and Petroleum. List of mineral and petroleum licences in Greenland. [ONLINE] Available at: http://www.bmp.gl/images/stories/minerals/list_of_licences/list_of_licences.pdf. [Last Accessed 15 Sept 2012]
- Bloomberg, Cairn’s $600 Million Greenland Oil Campaign Ends in Failure. [ONLINE] Available at:http://www.bloomberg.com/news/2011-11-30/cairn-s-600-million-greenland-oil-exploration-campaign-ends-in-failure.html. [Last Accessed 15 Sept 2012].
- Cairn Energy. Half-yearly Results. [ONLINE] Available at: http://www.cairnenergy.com/assets/files/cms/Interim_Results_Presentation_August_2012(1).pdf. [Last Accessed 15 Sept 2012].