Cairn Energy (LON:CNE) has started drilling on two wells offshore Greenland, embarking on one of the main stages of its 2011 exploration campaign.
The AT-7 well in the Atammik block, around 160 kilometres offshore Nuuk in west Greenland and the LF-7 well in the Lady Franklin block 300 kilometres offshore Nuuk, have now both started operating.
Cairn will use the Ocean Rig’s fifth generation semi-submersible drilling platform Leiv Eiriksson and drillship Ocean Rig Corcovado for the programme.
The 2011 programme will also include drilling one well in each of the Napariaq and Eqqua blocks in the southern Baffin Bay west Disko area. The government of Greenland has recently approved the location of seven exploration drill sites, which would allow Cairn to drill follow-up appraisal wells in the event of a discovery.
The campaign has started despite attempts by environmental activists from Greenpeace to disrupt drilling operations. On Thursday, the Danish navy removed two Greenpeace activists who attached themselves to the Leiv Eiriksson platform in survival pods, paving the way for the company to start drilling.
Cairn is claiming that the protests have had no impact on the schedule and is currently trying to fine Greenpeace €2 million a day, should the protests disrupt the operations.
Any delay to the drilling programme could inflict significant losses on the company, which is set to spend over US$1 billion on its oil exploration campaign in the Arctic in the next two years. According to Cairn, a one day delay would cost it US$4 million.