Maersk Oil postpones decision on Greenland investment
Maersk Oil, a unit of Denmark’s A. P. Moller-Maersk, has postponed a decision on whether to drill for oil at a exploration licence off the coast of Greenland.
Maersk Oil has as operator of the Baffin Bay, Block 9 exploration licence agreed with Greenland in late 2014 to extend the first sub-period of the license by two years, it said in an email sent to Reuters on Wednesday.
“The extension will allow for continued technical and commercial evaluation of any potential future opportunity before a decision to invest in any further activity is reached,” said Ebbie Haan, Maersk Oil’s chief growth officer.
Maersk Oil owns 47.5 percent of the licence, which is in the Northwestern part of Greenland’s waters, while British oil company Tullow Oil owns 40 percent and state-owned Greenlandic company Nunaoil owns 12.5 percent.
Oil companies around the world are slashing investments save on costs as the more than 55 percent fall in crude prices in the past six months is draining their cash flow.
Maersk Oil would have to close some sites and cut operating costs if the oil price remains at its current level, the group’s CEO said in an interview in December.
Maersk Oil has decided to slow down its exploration globally and its investment in Angola’s Chissonga oil field is under consideration.
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