The Baffin Bay oil and gas licensing round 2017

On Friday the 15th of December 2017, the deadline for applications for the Baffin Bay oil and gas licensing round expired. At the deadline, 9:00 AM local time, no bids had been submitted to the Ministry of Mineral Resources in Nuuk, Greenland.

The absence of interest was expected due to the global recession within the exploration industry. It must be noted that the present oil price still is noticeably lower than for a just a few years ago, when the interest for oil and gas exploration in Greenland was significant. The Department of Mineral resources assess that the absences of interest in this year’s licensing round best can be observed as an expression for restraint within the industry, which particularly hits hard in the exploration sector when the revenues are low.

The Baffin Bay licensing round is penultimate within the existing Oil and Mineral Strategy, which concludes at the end of 2018. The Government of Greenland is determined to follow the strategy, as deviations from the strategy may pose an investment risk for Greenland.

For further information, please contact: Deputy Minister, Jørgen T. Hammeken-Holm, +299 34 68 46