Greenland Energy drilling delay pushes Jameson Land plans toward 2027

Greenland Energy’s drilling delay means its planned oil wells in Greenland’s Jameson Land Basin will not start on the company’s earlier schedule. Greenlandic officials said approvals could not be completed in time, leaving the venture to target winter 2027, a date that remains uncertain and is not a permit to drill.

For investors, the update shows the difference between holding an exploration licence and having clearance to begin work. The project’s timetable now depends on regulatory reviews, required documentation and approvals from Greenland’s authorities.

Greenland Energy, a Nasdaq-listed explorer, is partnering with London-listed 80 Mile on the east Greenland project. 80 Mile holds the licences through its wholly owned subsidiary, White Flame Energy, and runs the permitting process. Greenland Energy is funding planned exploration work and, under the companies’ arrangement, would receive a majority interest in the project in exchange for that funding, subject to required permissions, according to reporting by the Guardian.

Why did Greenland Energy delay its drilling plans?

Greenland’s government said the necessary regulatory process could not be finished before the proposed drilling start, so the needed approvals could not be issued in time, according to the Guardian. Officials also said the schedule was too compressed to assess the project’s environmental and social effects.

The delay followed a separate warning to White Flame Energy over equipment brought ashore near Nerlerit Inaat airport. Greenland’s government said the company had not secured the required mineral-resources approval before starting that operation. It instructed the company that future logistics must be reported to and approved by the mineral resources authority beforehand, the Guardian reported.

Greenland Energy and 80 Mile told CNBC they received a formal warning and said they took it seriously. The companies said they intended to work with the authorities. The government did not order the equipment removed, according to the Guardian, while an application for permission was still being processed.

What still has to happen before drilling can begin?

Preparatory work, including landing equipment and establishing a camp, cannot start until a Societal Sustainability Assessment and an Environmental Impact Assessment are complete, according to Newsweek’s reporting on the government’s position. Preliminary studies, public hearings and further documentation are also among the remaining steps.

80 Mile said the postponement reflects the need to complete permits and regulatory approvals. Greenland Energy said it was working toward a winter 2027 permit timeline. But Jørgen T. Hammeken-Holm, Greenland’s permanent secretary for Mineral Resources, told Newsweek that this timing was only “maybe” realistic and that it was hard to say when drilling could begin. He said no drilling would start before all permissions were received.

The licences predate Greenland’s 2021 decision to stop issuing new oil licences on environmental grounds. That earlier grant allows the Jameson Land proposal to remain under consideration, but it does not amount to final approval for drilling.

Greenland Energy has ties to people associated with President Donald Trump’s administration, including board member Carol Craig and a documentary agreement involving Phil McGraw, known as Dr. Phil, CNBC reported. The company describes Jameson Land as a highly prospective, undrilled basin, while estimates of its potential resources remain company claims or speculative assessments rather than confirmed reserves.

This story draws on original reporting from CNBC.