The Canada Energy Regulator said on Tuesday that Imperial Oil's request to prolong the life of its isolated Norman Wells oil and gas facility in Canada's Northwest Territories has been halted awaiting the completion of an environmental assessment report.
The Norman Wells site, which spans nine man-made and natural islands in the Mackenzie River, Canada's longest river, and the town of Norman Wells on its banks, produces about 6,500 barrels of oil equivalent per day (boepd).
Exxon Mobil Corp. owns the majority of Imperial, which submitted an application last year to extend its operating permit for Norman Wells by an additional ten years. The permit is set to expire on December 31, 2024.
But in September, the Sahtu Secretariat Incorporated (SSI), the regional Indigenous authority, determined that the application needed an environmental evaluation.due to Imperial's proposal to replace the pipelines that connect its processing facilities to its wells.
According to the regulator, Imperial's permit will be extended while the Mackenzie Valley Environmental Impact Review Board completes the environmental evaluation.
According to a social media announcement from the CER, "this will allow the Norman Wells facility to continue operating while the Review Board's environmental assessment process unfolds."
According to an Imperial representative, the Calgary-based business was analyzing the most recent information and determining its next course of action.
In a letter to the CER in September, the SSI expressed worries regarding the effects of climate change on the operations at Norman Wells and the Enbridge pipeline that delivers the oil to Alberta.
The thawing of permafrost in the far north, according to SSI Chair Charles McNeely region sparked concerns about the stability of the gas and oil infrastructure, and the many pipes in the Norman Wells operation are in danger because to the Mackenzie River's extraordinary riverbed scouring.
"Does it make sense to accept any level of risk from an aging oilfield that contributed less than 1% of Canada's daily Conventional Light Crude production in 2021, in an area where environmental sensitivity is growing?" Written by McNeely, boereport.c0m
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