Shell has donated its Arctic energy exploration permits to the Nature Conservancy of Canada following its controversial exit from the region last year.
A total of 30 permits have been given to the body, which will then in turn give them to the federal government.
The permits cover 8,600 square kilometres north of Baffin Island at the eastern gate of the Northwest Passage.
They also encompass waters of Lancaster Sound, which is home to narwhals, seals, walrus and other Arctic animals.
Shell Canada president Michael Crothers said: “(The region) is adjacent to where the government has already said it would like to establish a conservancy, so our hope is that it will contribute to a much larger marine conservation area in the North.”
The proposal, however, has been stalled by a debate over the regions borders.
The federal government has outlined a smaller area that doesn’t include the permits, while environmental groups are holding out for a much larger protected zone.
In April, the World Wildlife Fund (WWF) filed documents in Federal Court which claimed Shell’s permits don’t exist.
They claim the permits were never renewed and have lapsed.