Canadian-based company Husky Energy has closed a pipeline on its Saskatchewan gathering system (SGS), after it spilled roughly 200,000 litres (l) to 250,000l of heavy oil and diluent from the line.
The spilled oil spread into the North Saskatchewan River.
Following the incident, spill response equipment, as well as crews was deployed at the site to begin clean-up after the company observed a sheen on the river some 30km east of Lloydminster city.
The SGS runs from Husky's heavy oil operations located east of Lloydminster to the company's facilities in Lloydminster.
Environment ministry Ralph Bock told the Canadian Press: "We've got containment of the spill at the release site, which is upstream, so there is no more product being released to the river."
At the time when the incident took place, the pipeline was carrying heavy oil with diluents that assists with the oil flow.
Husky did not disclose details on any potential impact of the spill, as well as shutdown that could have on shipments of oil.
The company is also working with provincial authorities and regulators on the response.
Water plant operators have been notified by the Saskatchewan Government regarding the incident in a bid to prevent any contamination of drinking water, Reuters reported.