Imperial Oil, BP in Limbo After Canada Freezes Arctic Drilling

  • Trudeau’s government offers few details on permit extensions
  • Five firms currently hold offshore exploration licenses
Photographer: Getty Images
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Energy firms including Imperial Oil Ltd. and BP Plc will get a year of consultations to hash out the fate of their rights in Canada’s Arctic after Prime Minister Justin Trudeau’s drilling freeze set the stage for a dispute over license extensions.

The Canadian leader and U.S. President Barack Obama said this week they would designate most of North American Arctic waters off-limits to new activity, including all future oil and gas licensing in Canadian waters. Trudeau’s government said existing licenses wouldn’t be affected, but initially offered scant detail.