Exxon reportedly opts out of Greenland licensing round

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

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.