Greenland authorities have issued a strong warning after an American oil company linked to US President Donald Trump began moving equipment to the Arctic territory in preparation for oil exploration, despite not having received the necessary approval from local authorities.

The development comes at a politically sensitive time, with Trump having repeatedly expressed interest in Greenland and renewed his claims about the strategic importance of the Arctic territory.

Greenlandic officials raised concerns after drilling equipment was brought ashore on the island's eastern coast in recent days.

Greenland Warns Oil Firm

The Greenland government said all future logistical operations related to mineral resources must be notified to and approved by the relevant authorities before being carried out.

Officials said no permission had been granted for the landing of the equipment at the time it arrived.

However, the government also said it would not be proportionate to immediately demand that the equipment be removed because an application for permission was already being processed.

The episode has highlighted tensions between Greenland's regulatory framework and the ambitions of private companies seeking to explore its mineral and energy resources.

Greenland Energy Plans Two Wells

The company at the centre of the controversy is Greenland Energy, a Texas-based firm established in 2025.

The company claims that as much as $1 trillion worth of crude oil could potentially lie beneath the Jameson Land region in eastern Greenland.

It had announced plans to spend around $60 million on drilling two wells to assess the area's oil potential. The company has subsequently indicated that it intends to begin with one well.

Greenland Energy's corporate filings state that it would acquire a majority stake in the project in return for financing the exploration programme.

Oil Licences Stopped in 2021

The proposed drilling faces a major regulatory hurdle.

Greenland stopped issuing new oil exploration licences in 2021, citing environmental concerns.

However, a British company, 80 Mile, had already secured exploration rights covering the Jameson Land area. Greenland Energy has sought to become the principal financial backer of the project.

Despite the existing exploration rights, drilling activities still require approval from Greenlandic authorities.

Equipment Arrives by Barge

The controversy intensified after local residents in the sparsely populated Jameson Land region reported seeing a tugboat bringing a barge towards the coast.

The barge reportedly unloaded around a dozen containers.

According to the Greenland government's statement, the equipment was brought ashore in connection with planned oil exploration drilling at Nunap Qeqqa in Jameson Land.

A Danish investigative outlet also reported that the shipping company involved confirmed the delivery was intended for Greenland Energy.

Company Says Approvals Are Progressing

Greenland Energy has maintained that discussions with Greenlandic regulatory and oversight authorities have been constructive.

In a letter to shareholders, the company said it remained encouraged by progress towards obtaining the approvals required for drilling.

The company has also said that the project is not connected to the wider political debate over US control or annexation of Greenland.

Greenland Energy chair and major shareholder Larry Swets has rejected suggestions that the oil project is part of an American annexation effort.

Trump Links Add Political Sensitivity

The company's connections to figures in Trump's political orbit have added another layer to the controversy.

Greenland Energy has reportedly been associated with Phil McGraw, popularly known as Dr Phil, who previously served on Trump's religious freedom commission.

The company has also appointed a director who is a US Navy veteran involved with Trump's Golden Dome missile defence initiative. Trump has previously described control of Greenland as strategically important in the context of US security.

Meanwhile, Jeff Landry, the Republican governor of Louisiana who has been serving as Trump's Greenland envoy, has suggested that Greenland could potentially begin producing oil as early as next year.

Earlier Permission Claim Disputed

The company also faced criticism after representatives reportedly claimed at a June community meeting that they had permission to conduct drilling activities.

Greenland Energy chair Larry Swets later acknowledged that the company's enthusiasm had resulted in communication that created confusion over the project's approvals.

The latest dispute has therefore raised questions about how Greenland's authorities will regulate the project and whether the company will ultimately receive permission to proceed.

For now, the application remains under consideration, while Greenland's government has made clear that future logistical operations connected to mineral exploration must receive the required approvals before being undertaken.