Greenland's Jameson Land Basin Identified as Major Undeveloped Oil Frontier with 13 Billion Barrels

Vast Oil Potential Unveiled in East Greenland

A recent independent evaluation has identified Greenland's Jameson Land Basin as one of the world's most significant undeveloped onshore oil plays. A report by Sproule ERCE estimates the basin contains approximately 13.03 billion barrels (P10, gross unrisked) of recoverable oil. This substantial finding places the basin among the 15 largest undeveloped oil accumulations worldwide, with some assessments ranking it as the thirteenth largest globally. The basin, located in East Greenland, spans roughly 2 million acres and has historically been underexplored. The Sproule report specifically identifies 58 prospects and leads within the area. Companies involved in the current assessment and future plans include 80 Mile PLC, which holds a 30% working interest through its subsidiary White Flame Energy A/S, and March GL Company, a private exploration firm that can earn up to 70% interest by fully funding initial exploration efforts. Preparations are underway for two exploration wells, scheduled to commence in the second half of 2026, targeting depths exceeding 3,500 meters. Halliburton has been contracted for drilling services and logistics, with IPT Well Solutions appointed as project manager.

Geological Significance and Historical Interest

The technical case for Jameson Land's potential is supported by several favorable geological features. The basin exhibits multi-play systems with stacked reservoirs, thick sedimentary deposits, and a combination of structural and stratigraphic traps. Its sedimentary sequences bear resemblance to those found in proven hydrocarbon-producing regions such as the North Sea. Interest in the basin's hydrocarbon potential dates back decades; in 1972, Atlantic Richfield (ARCO) notably ranked the Jameson Land Basin as having the highest potential for hydrocarbon accumulations in East Greenland.

Greenland's Policy on Oil Exploration

Despite the significant resource estimates, the future of oil exploration in Greenland is shaped by the government's environmental policies. In July 2021, the Greenlandic government, known as Naalakkersuisut, announced its decision to cease issuing new licenses for oil and gas exploration. This move was driven by concerns over climate change and the belief that the economic and environmental costs of extraction were 'too high'. The government stated that this step was taken 'for the sake of our nature, for the sake of our fisheries, for the sake of our tourism industry, and to focus our business on sustainable potentials'. While new licenses are no longer being issued, the government has indicated it would maintain existing active hydrocarbon exploration licenses as long as the licensees are actively exploring, suggesting that current projects like those in Jameson Land Basin may proceed under pre-existing agreements.

Looking Ahead

The identification of such a substantial oil reserve in the Jameson Land Basin presents a complex scenario for Greenland. The potential for significant economic development from these resources is clear, yet it stands in contrast to the government's stated commitment to environmental protection and a shift towards sustainable industries. The planned drilling operations in 2026 will be a critical step in further assessing the commercial viability and recoverability of these estimated reserves, all while navigating the broader political and environmental landscape of the Arctic.