SCOTTISH oil and gas operator Cairn Energy said yesterday it had gained approval from the Greenland government to go ahead with the first two exploration wells of a four-well programme planned this summer.
The Edinburgh-based company said preparations for the programme in the Disko West area off the country’s west coast were continuing with the first well expected to start early next month.
It has hired the drillship Stena Forth and semisubmersible rig Stena Don to carry out the campaign, to be completed by early October and says 30 prospects and leads have been identified on its Greenland acreage.
Some environmental groups have called on Greenland to put Cairn’s drilling plans on hold until more information is gathered on the Gulf of Mexico oil spill.
Greenland has been attracting strong interest from oil firms in recent years, despite having no tradition in oil production and harsh conditions for exploration.
There are hopes its waters could hold billions of barrels, but a single oil find of about 400million barrels could be a commercial proposition at just $40 a barrel.
