GOVERNMENTS ANXIOUS TO STIMULATE GREENLAND EXPLORATION

The Greenland and Danish governments have started an initiative to promote oil and gas and hard minerals exploration in Greenland. The initiative includes the goal of enacting fiscal legislation in Greenland and, if necessary, in Denmark "to provide competitive working conditions for the international mining and oil industry," says the Mineral Resources Administration (MRA) for Greenland, Copenhagen. Part of the strategy calls for introduction of substantially changed concession terms,

Jan. 28, 1991

2 min read

The Greenland and Danish governments have started an initiative to promote oil and gas and hard minerals exploration in Greenland.

The initiative includes the goal of enacting fiscal legislation in Greenland and, if necessary, in Denmark "to provide competitive working conditions for the international mining and oil industry," says the Mineral Resources Administration (MRA) for Greenland, Copenhagen.

Part of the strategy calls for introduction of substantially changed concession terms, especially as regards exploitation of hard minerals.

The governments hope to encourage oil exploration in territories and continental shelf areas in Greenland by holding concession rounds in the 1990s for West Greenland continental shelf areas.

MRA also proposes to simplify and adjust the environment and safety aspects of its regulation of mineral resources activities.

The countries also plan to redefine the future duties of Nunaoil AS, the Greenland Home Rule Authorities's and the Danish state's joint mineral resources company.

OIL, GAS DEVELOPMENT

MRA has invited companies to discuss their level of interest in reestablishing oil and gas exploration in Jameson Land, where a group headed by ARCO and Agip SpA relinquished its concession at yearend 1990.

The agency also seeks comment on whether preliminary oil exploration can begin onshore in East Greenland north of Jameson Land. These territories are between 72 and 76 N. Lat.

It will begin preparing to hold concession rounds in areas of relatively easy technological access, mainly the central and southern continental shelf areas in West Greenland.

It also plans to continue the wide ranging, multicompany Kanumas seismic project. Authorities plan to monitor the project closely and follow it if indicated with more exploration projects or concession rounds in parts of the areas it covers.

The plans are along the lines of recommendations in a strategy report presented in May 1990 by a working group appointed by the Greenland executive (Landsstyre) and the Danish Minister of Energy.