Canadian company gets Greenland oil exploration rights

Greenland’s home rule government has granted ocean oil-drilling rights to the Canadian company EnCana and Nunaoil.

EnCana Corporation and Nunaoil, Greenland’s national oil company, received oil-drilling rights in Greenlandic waters, 250 kilometers west of Nuuk in an ocean area of 2,897 square kilometers, which has never been drilled before.

“It’s an interesting area with enormous structures and we already know about some oil seepage in Western Greenland,” EnCana’s director John K. Brannan said. “My estimation is that there is a five to 10 percent chance of finding oil, but it’s hard to tell at this point.”

Brannan said the drilling was a high-risk financial venture and that more companies would be invited to join EnCana if it found good indicators of oil.

EnCana Corporation holds 87.5 percent of the drilling license and will serve as operator, while Nunaoil has the other 12.5 percent. Nunaoil is owned by Greenland’s Home Rule Government and the Danish Oil and Natural Gas company.