Canada’s second largest integrated oil firm Imperial Oil Limited has reportedly announced to have resumed oil production at Norman Wells in the Northwest Territories. As per trusted sources, the company restarted production almost two years after it was forced to halt shipments on a pipeline susceptible to slope stability concerns at a crossing on Mackenzie River near Fort Simpson.
Reportedly, the replacement work on the two-kilometer section of the 870-kilometer pipeline started in May this year after it obtained the regulatory nod. The work was subsequently completed in the last month, cite sources. The Calgary-headquartered firm has commenced shipping oil from the storage on Line 21 pipeline of Enbridge Inc. since September. Sources privy to the development claim that Line 21 extends from Norman Wells into the northern region of Alberta.
Interim Town Manager Darren Flynn was quoted in a report published by The Financial Post stating that the people of the region are extremely delighted as the resumption of the plant would create employment opportunities.
In a statement released by Imperial Oil Limited, the company stated that more than 100 contractors and employees have been working to restart operations with production anticipated to ramp up in the upcoming weeks to about 10,000 barrels each day, which is consistent with the output before the shutdown.
Reportedly, the company had recognized the Norman Wells oilfield as its non-core asset and was attempting to sell it prior to the shutdown.
Senior Vice President of upstream at Imperial Oil Limited, John Whelan reportedly commented that the restart of regular operations at the plant would lead to an increase in economic benefits to the local communities.
Reportedly, the Norman Wells operations of Imperial Oil would also restart supplying electricity to Northwest Territories Power Corporation (NTPC). The said operation generates power for its own usage and sells surplus electricity to NTPC which further supplies the same to the Norman Wells town.