Greenland Launches 2nd Licensing Round

Greenland expects to launch its second licensing round in April, once the move is approved by authorities in March. The licensing round covers tracts offshore West Greenland and will feature a 90 days application deadline. The political decision to sanction the second licensing round was delayed last year, awaiting a decision to reduce the Greenland company tax and subsequently by the Danish general election. A reduced company tax to 30% from 35% was approved by the Greenland government last November. Greenland is a Danish province with limited home rule. The local administration receives 60% of its budget revenues from the Danish government. The November Danish general election delayed the meeting of the Joint Committee on Minieral Resources until February, 2002, when the terms of the licensing round are expected to be recommended for approval by the Greenland and Danish governments. Once the terms are approved, the licensing round will be announced by a letter of invitation in the beginning of April. The authorities will subsequently invite the petroleum industry to opening meetings in Copenhagen and Houston. Greenland awarded two licences in its first round and six wells, all unsuccessful, have thus far been drilled.