A trio of energy companies have handed back exploration permits for drilling in Western Greenland amidst the fall in oil prices.
It has emerged that Statoil, GDF Suez and Dong Energy have decided against exploring in the region.
John Finborud, director of GDF Suez Greenland, said the current drop in prices and increase in production expense meant the costs were too high.
He said: “Never say never. But as the situation in the market is now – together with the fact that Greenland is an area with very little infrastructure, rather large environmental requirements and a very challenging environment – it will be very expensive to develop these fields.”
Statoil have returned three oil licences and the company said it would be focusing its efforts on areas such as the Barents Sea.
A spokesman said it had to look at the “global” and prioritise projects with the most potential.
Environmental group Greenpeace welcomed the move.