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CALGARY — A drilling rig was being retooled in Alberta. Trucks and cranes were set to ship from Denmark. More equipment was due from Houston.
And a Quebec shipping firm was preparing to receive cargoes from those far flung locales at a port west of Montreal, load them Tetris-style onto vessels and sail this fall to Greenland’s rugged and inhospitable east coast. All this, in preparation for what would be the first oil wells to be drilled in the barren tundra of Jameson Land Basin.
But then, in mid-August, authorities in the mostly autonomous Danish territory said they needed more time to review Greenland Energy Co.’s plans to tap what it believes could be an oil bonanza.
“We literally shut everything down in its tracks,” Robert Price, Greenland Energy’s chief executive, said in a recent interview. Equipment has been put into storage and plans set aside for “a good year” until November or December of 2027.
“You just take a deep breath and you just move forward,” he said.
“We’re going to be in Greenland for a long time. We’re there for the long term. It’s a delay, but it’s not an insurmountable delay.”
Also on-hold is a six-part documentary series chronicling the Greenland exploration program hosted by Phil McGraw, better known as the TV personality Dr. Phil, and produced by McGraw’s firm Envoy Media Co.
The area Greenland Energy aims to explore is covered by pre-existing licences held by its joint-venture partner, U.K.-based 80 Mile PLC.
80 Mile obtained the licences long before the Greenland government banned new oil and gas exploration in 2021. Those permits — two granted in 2015 and one in 2018 — are still valid, Greenland’s Ministry of Trade and Natural Resources says in an online information page.
“A revocation of the existing permits would require special steps and can be considered expropriation,” it said. The permits are valid until the end of 2028, and could be extended.
Getting the go-ahead to actually get to work has been another matter.
“We had what we thought were assurances to get the permits to drill the wells before the end of this year and as it turned out, the government said that they wanted more time to review it,” Price said.
Initially, the regulator asked Greenland Energy to drill one exploratory well instead of two, and the company agreed, Price said.
The Greenland government said in an Aug. 12 news release that government and company officials met in July and that the firm presented plans to begin exploration this winter.
“The department expressed concern at the meeting about the very tight schedule and reviewed the regulatory process that must be completed before drilling activities can be approved,” it said. Among other things, social sustainability and environmental impact assessments must be completed, as well as public consultations.
“It’s just a process,” Price said. “We’re drilling the Arctic Circle, and we expect delays in the Arctic Circle.”
Other than storage and maintenance costs, Greenland Energy isn’t taking much of a financial hit from the delay, he added.
This summer, Greenland Energy and its partner ran afoul of local authorities when equipment was transported to near the planned drilling site from elsewhere on the island without the approval of the mineral resources ministry. The government decided it would not be “proportional” to order the drilling bed be moved back to its previous location, but instead issued “a strong warning” that the company must inform the government of any logistical matters in the future.
Price said the company obtained a permit last year to land the equipment, but it had expired. It believed moving the equipment to its airport in Jameson Land would be allowed, but the mineral resources regulator disagreed such a carve-out existed. Price said “we apologized” and “our equipment there right now is lawfully stored there.”
Two Canadian companies enlisted in the effort — Calgary-based Stampede Drilling and Desgagnés, which specializes in shipping in harsh environments — have sought to make clear that they had nothing to do with that issue.
Stampede Drilling said a rig that’s being upgraded for “potential deployment” to Greenland remains in Canada.
“Stampede further confirms that it will not be landing a drilling rig in Greenland unless Greenland Energy’s drilling program receives all required regulatory consents and approvals of Greenlandic authorities.”
Desgagnés said none of its vessels have unloaded cargo in Greenland, nor have they been scheduled to travel there.
“Desgagnés conducts its operations in strict compliance with all applicable laws, regulations, and requirements in Canada and internationally,” it said.
“The management, authorization, and implementation of the project fall exclusively under the jurisdiction of the competent Greenlandic authorities, whose decisions will be respected by Desgagnés.”
The drilling plans were coming together at the same time U.S. President Donald Trump set his sights on Greenland for U.S. annexation. The government on the island, whose population of about 56,000 is mostly Inuit, has fiercely rejected such an idea. Price has said he does not believe a U.S. takeover of Greenland is on the table, and that his company is committed to respecting Greenland’s independence.
Oil drilling may be on pause in Greenland, but Price said he’s still busy with work elsewhere in the territory. Another company he runs, USFM Corp., has been involved in a nickel exploration project on the west side of the island.
This report by The Canadian Press was first published Sept. 1, 2026.
Lauren Krugel, The Canadian Press
