Imperial Oil, partners defer Beaufort Sea exploration plans

Imperial Oil Ltd. and its partners have decided to defer plans to explore for oil in the Beaufort Sea. In a letter to the National Energy Board, Imperial says it’s putting regulatory work on hold. The company says more study is needed into how to operate in the harsh Arctic waters, where the drilling season is short. But under Imperial’s current licence, there’s not enough time to do that work, so it’s asking for an extension. The NEB requires companies show they can kill a ruptured oil well in the Arctic offshore with a relief well in the same season it’s drilled — a difficult and costly proposition. Imperial’s partners in the Beaufort joint-venture include its U.S. parent, Exxon-Mobil Corp., and BP PLC.