Exxon reportedly opts out of Greenland licensing round


ExxonMobil (XOM) appears set to pull out of exploration in Arctic waters off Greenland and was not among bidders in the country’s latest licensing round, with block awards likely to be issued soon, Upstream reports.

Keen competition is expected for the frontier tracts which cover nearly 50K sq. km and estimated to hold potential resources of 31B boe; bidders believed to be in contention include BP, Shell (RDS.A, RDS.B), Chevron (CVX) and Statoil (STO), but XOM apparently will not participate.

Despite the resource promise, the Greenland blocks would require spending of ~$500M on seismic surveys and drilling of up to two exploration wells.

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Comments (3)
  • Veritas1010
    , contributor
    Comments (3168) | Send Message
     
    Interesting.

     

    The question is why?
    13 Dec 2013, 08:51 PM Reply Like
  • geologist
    , contributor
    Comments (572) | Send Message
     
    Size of the prize, and the risk reward equation doesn't look good. ExxonMobil has experience in this area with limited success. Better places to explore in.
    14 Dec 2013, 05:14 AM Reply Like
  • Veritas1010
    , contributor
    Comments (3168) | Send Message
     
    Agreed. Thank you for the commentary geologist.
    14 Dec 2013, 08:37 PM Reply Like
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