Licensing Round 2012/13 news - three consortiums are granted exploration and exploitation licences in the Greenland Sea pre-round
Three consortiums are granted exploration and exploitation licences in the Greenland Sea pre-round
The Government of Greenland has decided to grant exclusive exploration and exploitation licences to three consortiums in four blocks in the Greenland Seas area in North East Greenland. Please see press releases below for further information
The Greenland Sea Area –15 blocks available for the Ordinary Round
On December 1st 2011 the Bureau of Minerals and Petroleum (BMP) announced the opening of the Greenland Sea Area licensing round in the Letter of Invitation April 2011.
The licensing round consists of two successive rounds. The first round, a pre-round for the Kanumas Consortium Members, had its application deadline on the 15th of December 2012. 11 blocks were up for bidding in this round. The BMP received applications from 3 bidding groups.
The application deadline for the Ordinary Round is the 15th of October 2013.
The following blocks are available for bids:
The Ordinary Round in brief – who can apply?
The second round is an Ordinary Round for all interested companies, including non-Kanumas Consortium Members. Any company and group of companies may participate without limitations in the Ordinary Round. A company or group of companies applying for an exploration and exploitation licence shall however be, or include a pre-qualified operator.
A company that wants to be the Operator under a licence to be applied for in the Greenland Sea Area must submit a Pre-Qualification application no later than the 1st of July 2013. On the 15th of August 2013 a decision on the Pre-Qualification can be expected from the Greenlandic authorities.
Pre-qualification is a non-binding registration and assessment covering the whole licensing area. An application for Pre-Qualification does not include an obligation to forward a licence application afterwards.
The purpose of Pre-Qualifying operators is to document at an early stage:
- That a subsequent operator can carry out activities in accordance with good international practice, as established for hydrocarbon activities carried out under similar conditions,
- That the HSE-organization of the operator is in line with internationally recognized standards, and
- That the collective license group has the necessary financial capability to carry out exploration and exploitation in the licence block(s) applied for.
Please see the Pre-Qualification Application Checklist (PAC) for a list of data needed. If an operator has already been pre-qualified for the Greenland Sea area, the operator will not need to pre-qualify again for the Ordinary Round. In this case, the operator will be asked to submit updated information with the application.Documents regarding licensing round 2012/13:
Letter of Invitation
Model Licence - English version
Model Licence - Danish version
Model Joint Operating Agreement
Model Joint Operating Agreement, Appendix A
Model Joint Operating Agreement, Appendix B
Letter regarding changes of BMP bank information
The licensing area in the Greenland Sea (offshore Northeast Greenland) has been chosen on the basis of a strategic environmental impact assessment for the region. The strategic environmental impact assessment was carried out by the Danish National Environmental Institute and the Greenland Institute of Natural Resources to ensure that hydrocarbon activities conducted in the area can take place on an environmentally sustainable foundation. Further to this, studies on ice and other physical conditions of the areas have also been carried out in preparation of the tendering round.
Further to this, studies on ice and other physical conditions of the areas have also been carried out in preparation of the tendering round. The Danish Meteorological Institute (DMI) and the Technical University of Denmark (DTU-Space) has for the BMP made a report: “KANUMAS MET/ICE/OCEAN Overview Report 2011” The report gives an updated overview of physical environmental conditions, especially ice conditions, observed in recent or near future licence areas off the north-east and north-west coasts of Greenland.
There will be stringent requirements on health and work safety as well as on environmental protection. Use of the best available technology will be required to reduce the environmental impact and risk of accidents.
Seismic surveys and other geophysical data indicate that large hydrocarbon deposits can be present in the area. USGS completed in 2007 an estimate of undiscovered oil and gas resources in the subsurface in the sea in the East Greenland province, which include the Greenland Sea licensing area. The mean estimate for oil and gas in the province was calculated at more than 31 billion barrels of oil equivalents.