Greenland Delays Trump-Linked Oil Firm's Arctic Drilling Plans

Authorities in Greenland are forcing a US oil company linked to President Donald Trump to postpone drilling plans in the Arctic territory. Greenland Energy Company (GEC), a Nasdaq-listed oil and gas firm based in Texas, stated it was working towards acquiring a drilling permit for the winter of 2027, marking a significant delay from an earlier timeline issued by Jeff Landy, US envoy to Greenland, who in May suggested production could begin within a year.

In a statement released on Wednesday, Greenland's government explained: “The necessary regulatory process cannot be completed and the necessary approvals cannot therefore be obtained before the planned start of drilling.” The government also noted that during talks, it expressed concerns that the original schedule was too tight to properly assess social and environmental impacts. Previously, authorities issued a “strong warning” to the joint venture for bringing equipment onshore without authorization.

The project focuses on Jameson Land, a highly prospective yet undrilled basin located on Greenland's east coast. GEC estimates that up to $1 trillion in crude oil may lie beneath the 8,429-square-kilometre project area. GEC chief executive Robert Price stated: “Operating in the Arctic requires patience, flexibility and a long-term perspective. We will use this time to refine our plans and deepen relationships with local communities, strategic partners and relevant authorities.”

British partner company 80 Mile informed investors on Wednesday that the delay is strictly tied to the time needed for permitting and regulatory approvals, representing no change to its overall plans for Jameson. The UK firm holds licenses for the Jameson Land basin via its wholly owned subsidiary, London-listed White Flame Energy. These licenses were secured before the Greenlandic government halted issuing new ones in 2021 due to climate change concerns.

GEC chairman Larry Swets has previously been associated with access to President Donald Trump's inner circle, while Carol Craig, a US Navy veteran contributing to the America's Golden Dome missile defence system, serves on the board. Furthermore, SEC filings from May 6 revealed that Citadel acquired a 9.2 per cent stake in GEC, with billionaire hedge-fund manager Kenneth Griffin holding 4.31 million shares, equating to a 9.3 per cent stake.

President Trump has renewed his focus on acquiring Greenland, citing its strategic Arctic Circle location as vital to US national security. Speaking at a Nato summit in Ankara, Turkey last month, the US leader argued that the semi-autonomous island should be governed by the United States rather than Denmark. Danish Prime Minister Mette Frederiksen swiftly dismissed the idea at the summit, stating: “It is a well-known position of the United States that it wants to own and take over Greenland. I hope that it is equally well-known everywhere that this is not going to happen.”