A U.S. oil company with ties to President Donald Trump is preparing for drilling operations in Greenland’s Jameson Land Basin, but has proceeded with moving equipment before receiving necessary approvals from local regulatory authorities.
The company in question is Greenland Energy Company, chaired by Larry Swets Jr., who is reported to be close to the president. The firm is partnering with London-listed 80 Mile Plc, which holds the exploration license. Greenland Energy has committed to funding up to two exploration wells to assess hydrocarbon potential in the region. However, the Greenland government recently issued a warning to the licensee, stating that all logistical activities must be authorized by the mineral resources authority before proceeding. Officials noted that while an earlier approval to move equipment has expired and has not been renewed, the matter is currently under review.
In correspondence with shareholders, Greenland Energy characterized the initiative as potentially “one of the most significant onshore exploration programs undertaken in Greenland in decades.” The company stated that it has held constructive meetings with Greenlandic authorities and remains optimistic about obtaining necessary approvals. Following discussions with government officials, the parties agreed to focus the 2026-2027 winter program on a single exploration well rather than pursuing two wells during the current field season.
Greenland suspended its pursuit of oil exploration in 2021 after 50 years of largely unsuccessful efforts, citing environmental concerns as outweighing potential benefits. The territory has witnessed only 25 exploration wells drilled throughout its history, all unsuccessful. Industry analysts emphasize that despite theoretical hydrocarbon and mineral resources, Greenland’s extreme remoteness, harsh climate, limited infrastructure, and high extraction costs make resource development economically challenging and operationally complex.
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