Citing the need for more time to study how to safely drill in the Arctic waters, Imperial is now seeking the permission from the Canadian Government for a seven-year extension to their license, which is scheduled to expire in 2020.
The company is seeking extension in order to complete the regulatory process and decide on potential measures required for drilling the well.
Imperial spokesman Pius Rolheiser was quoted by The Wall Street Journal as saying: "For us, it’s all about giving us the time to do the work we believe necessary so that we can deliver the most technically sound and environmentally responsible program we can."
In a letter to Canada’s National Energy Board, Imperial Oil said:: "If approved, the extension would provide sufficient time to undertake the necessary technical studies and develop the technology and processes to support responsible development in the Beaufort Sea."
According to the Canada’s National Energy Board, the Arctic region, including the Mackenzie River Delta, is estimated to have more than 1.36 billion barrels of oil.
The region is also estimated to have about one-third of the world’s untapped natural gas.
The move comes on heels of the decision made by Chevron in December 2014 to withdraw its exploration project in Beaufort due to economic uncertainty amidst plunging oil prices, reported Reuters.
BP owns 50% stake in the Beaufort license while Imperial and Exxon each hold 25% interest.
