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Cairn to search for oil and gas in under explored Greenland

Steel News - Published on Fri, 03 Dec 2010

Cairn Energy has beaten off competition from around the world to win another exploration licence off Greenland, where its directors hope to make bumper finds of oil and gas. Soon after completing its first season of drilling off Greenland, the Edinburgh based company has won confirmation that its bid for more exploration acreage has been successful.

Cairn is one of seven international firms that won the right to explore in the Baffin Bay off North West Greenland in the latest licensing round completed by the country’s Government. With giants like Shell and ConocoPhilips in the winners’ list, this provided further evidence that Greenland has captured the attention of some of the industry’s biggest names.

The Greenland Government had 17 applications from 12 firms. It said competition for the most attractive blocks had been fierce. Cairn Energy moved fast to establish a big position in an under-explored area that experts in the United States have estimated may contain billions of barrels of oil.

While Cairn did not make any commercial finds this summer, the company encountered gas or oil with two of the three wells it drilled. The drilling attracted fierce criticism from activists, who highlighted the risks associated with exploring in an area they said has great environmental significance.

The Greenland Government said the criteria for assessment placed particular emphasis on the companies’ systems for managing safety, health and the environment, and their practical experience.

Separately, India’s oil minister said the country’s Government would make Cairn wait until the end of February before deciding whether to approve the company’s move to sell the bulk of its holding in its Indian business to Vedanta Resources, for up to USD 8.5 billion.

(Sourced from HERALD SCOTLAND)

Posted By : admin on Fri, 03 Dec 2010
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