Imperial Oil, one of Canada’s largest producers of conventional crude oil and natural gas, is looking to sell off its Norman Wells oil assets in the territory’s Sahtu region.
While a definitive decision hasn’t been made, the Calgary-based company says it plans on meeting with community leaders to discuss its plans.
Imperial Oil first discovered oil at Norman Wells – roughly 150 kilometres south of Arctic Circle – back in 1920.
According to its website, the operation is the most northerly producing oilfield in Canada.
Gross production at Norman Wells averaged 11,000 barrels per day last year, which marks a significant drop from production some 30 years ago.
2016 is expected to be the worst year in terms of oil drilling activity since the industry started keeping drilling records in 1977.
Activity has been on a steep decline as the drop in oil prices has prompted companies to cut back on exploration and early development.
Imperial Oil says it will start marketing its Sahtu assets in the third quarter of 2016.