Greenland issues 'strong warning' as Trump-linked US oil firm prepares to drill

Greenland's government has issued a "strong warning" after an American oil company linked to US President Donald Trump brought drilling equipment ashore in the Arctic territory without receiving approval from local authorities.

Greenland Energy, a Texas-based company established last year, is preparing to explore for oil in the remote Jameson Land region on Greenland's eastern coast. The development comes as Trump continues to threaten to claim the strategically important Arctic territory.

Materials for the planned drilling operation were brought ashore in recent days, prompting Greenland's government to say that no approval had been granted for the landing of the equipment.

"All future logistical matters must be advised and approved by the mineral resources authority – before they are carried out," the government said in a statement.

Executives of Greenland Energy have claimed that as much as $1 trillion worth of crude oil could lie beneath Jameson Land. The company has announced plans to spend $60 million on drilling two wells to assess the potential reserves.

Greenland stopped issuing new oil licences in 2021 on environmental grounds. However, UK-based 80 Mile had already secured exploration rights in Jameson Land. Greenland Energy's corporate filings say it plans to take a majority stake in the project in exchange for financing the exploration, although it still requires government permission to proceed.

The company has attracted several figures associated with Trump's political and security circles. It has retained Phil McGraw, better known as Dr Phil, a former chatshow host who served on Trump's religious freedom commission, to produce a documentary series about the project.

Greenland Energy has also appointed a US Navy veteran involved in Trump's Golden Dome missile defence programme as a director. Trump has said control of Greenland is "vital" to the initiative.

Larry Swets, Greenland Energy's chair and a major shareholder, has said the oil project is "not related to American annexation".

The company previously faced criticism after a representative told a community meeting in Jameson Land in June that it had permission to land drilling equipment. Swets later said the company's "enthusiasm for the project led us to communicate in a way that created confusion".

The following month, local residents saw a tug pulling a barge towards the coast and unloading about a dozen containers.

"The goal was to get the equipment onshore at Nunap Qeqqa [Jameson Land] in connection with planned oil exploration drilling," the Greenland government said.

The Danish investigative outlet Danwatch quoted the head of the shipping company as confirming that the delivery was for Greenland Energy.

The company has declined to respond to questions about the development. In a letter to shareholders on Thursday, however, it said recent meetings with Greenlandic regulators had been constructive and that it remained encouraged about securing the remaining approvals needed for drilling.

The company said it would initially drill one well instead of the two previously planned.

As a semi-autonomous territory of Denmark, Greenland controls decisions concerning its natural resources through its locally elected authorities. Those authorities now face a difficult decision over the proposed project.

The planned wells appear to fall within a conservation area protected under the Ramsar Convention on wetlands. Granting permission could therefore raise environmental concerns, while refusing it could, some observers fear, provide Trump with another argument for pursuing his stated ambitions regarding Greenland.

The Greenland government said it would "not be proportionate" to demand that the equipment already brought ashore be removed. It added that an application for permission was still being processed.

Greenland Energy has said a vessel carrying about 300 shipping containers of drilling equipment is scheduled to leave Canada on September 12, with drilling expected to begin in October.

Trump's Greenland envoy, Louisiana Governor Jeff Landry, has said Greenland could be producing oil as early as next year.