BP HAS been forced to abandon hopes of drilling in the Arctic, currently the centre of a new oil rush, because of its tarnished reputation after the Gulf of Mexico spill.
The company confirmed last night it was no longer trying to win an exploration licence in Greenland. “We are not participating in the bid round,” said a spokesman at BP’s London headquarters who declined to discuss its reasons for the reverse.
The setback, which follows the announcement this week of a major find in the region by British rival Cairn Energy, is the first sign the Gulf of Mexico disaster may have permanently damaged BP’s ability to operate – not just in US waters, but in other environmentally sensitive parts of the world.
The bureau of minerals and petroleum in Nuuk, the capital of Greenland, confirmed the names of successful bidders for future exploration licences would be announced in coming weeks.
The bureau refused to comment on industry rumours it decided not to consider BP as a result of the Gulf disaster. Senior sources confirmed to the Guardianthat the Greenland government and BP had agreed it would be inappropriate for the company to be involved. – (Guardian service)