Cairn to Lead the Way in Greenland's First Commercial Production
At a signing ceremony held yesterday in Greenland, Cairn Energy Exploration Director Dr. Mike Watts compared himself to Erik the Red, stating that the Capricorn exploration team could provide Greenland with its first commercial oil production.
"Then 'Mike the Gray' will have done his job," said Watts, referring to the opportunity for success recently allotted to Cairn with the acquisition of four oil and gas exploration blocks offshore west Greenland.
Two of the blocks awarded are in the Disko West Round, and the other two are located in the Open Door Area. In addition, Cairn has acquired a 40% interest in two west Greenland offshore blocks operated by EnCana.
The total combined area of the leases constitutes approximately 52,000 kilometers squared, which is equal to 231 North Sea blocks. To date, only six offshore wells have been drilled in the area: one in 2000 and the other five in the 1970s.
Watts called Greenland's offshore fields "a true frontier country where oil and gas exploration is at an embryonic stage. We both recognize and believe in the potential of Greenland.
"The evaluation of all six blocks will greatly enhance our understanding of the West Greenland basin and its potential for hydrocarbons," said Watts.
Cairn's acquisition coincides with an announcement that Greenland has taken the initial steps to secure its autonomy from Denmark. According to a Dow Jones report, a November referendum is in place that could grant Greenland the desired autonomy as early as June 2009.
Annual subsidies received by Greenland from Denmark total US$630 million. Commercial production of hydrocarbons has the potential to cover that subsidy and more.
Oil companies' interest in Greenland and other northern territories has arrived with the effects of global warming, which has helped to 'break the ice' and provide exploration and recovery operations that were heretofore cost-prohibitive if not impossible.
At the signing ceremony, Watts stressed the importance of teamwork in the Greenland exploration endeavor, stating that in each block Cairn has partnered with NUNAOIL, the national oil company of Greenland, to make the hydrocarbon hunt a success.
The official stance of the Greenland Bureau of Minerals and Petroleum is that it "engages in converted efforts to promote Greenland's mineral potential … attempting to sharpen private-enterprise interest in exploration activities."
In the end, the partnership between Greenland and Cairn should be a match made in heaven. After all, Cairn's motto is "Discovering hidden value through entrepreneurial exploration."
We want to hear from you. Questions, opinions and suggestions are all welcomed by the Rigzone Staff. Write us at news@rigzone.com .
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally