BP has scrapped plans to drill in the Arctic, where a new oil rush is expected, amid fears such a move would be "political madness" after the Gulf oil spill, Britain's Guardian daily said Aug. 25, AFP reports.
BP said it was no longer planning to try and win an exploration licence in Greenland, it said.
"We are not participating in the bid round," a spokesman for the British firm told the paper without giving details on why the decision was taken.
BP's decision came after Scottish exploration group Cairn Energy revealed Aug. 24 it had discovered gas off Greenland's coast and said there may be other hydrocarbon resources in the region.
The news fuelled expectations of a new oil rush, but also sparked concerns among environmental campaigners over the effect of energy firms targeting the area.
The bureau of minerals and petroleum in Greenland's capital Nuuk said the names of successful bidders for new exploration licences will be announced in the next couple of weeks, according to the Guardian.
Senior sources told the paper that the Greenland government and BP had agreed it would be a bad idea for the company to be involved.
"With the Greenpeace ship already harassing Cairn off Greenland -- a company which has an exemplary safety record -- everyone realised it would be political madness to give the green light to BP," one source said.
