21-01-05 Canadian oil company EnCana and Nunaoil, the national oil company of Greenland, were granted oil-drilling rights in Greenlandic waters. The companies will explore for oil 250 km west of the capital Nuuk in an ocean area of 2,897 sq km, which has never been drilled before.
"It's an interesting area with enormous structures and we already know about some oil seepage in Western Greenland," EnCana's Director John K. Brannan said. "My estimation is that there are 5-10 % changes of finding oil, but it's hard to tell at this point."

Brannan said the drilling was a high-risk financial venture and that more companies would be invited to join EnCana if it found good indicators of oil.
EnCana Corporation holds 87.5 % of the drilling license and will serve as operator, while Nunaoil has the other 12.5 %. Nunaoil is owned by Greenland's Home Rule Government and Danish Oil and Natural Gas (DONG).

The exploration agreement is the second for the Canadian company, which won bids in 2002 for exploration of an area 80 km Northeast of the new area.