PetroCanada/Suncor Operations in Libya

=History=

Suncor is still know as Petro-Canada in Libya, and holds a 49 percent working interest in Harouge Oil Operations, which is a joint venture company (JV) with the National Oil Corporation (NOC) of Libya. Harouge was charged with developing and producing from existing fields, including Amal, Ghani, En Naga and Ed Dib.

A leaked US State Department cable from October 2009 reveals that the Libyan government had demanded that Petro-Canada cut its oil production by 50 percent due to a diplomatic row between Libya and Canada over Gaddafi's aborted trip to Canada in late September that year. Reportedly, PetroCanada were forced to conduct contingency planning to evacuate their staff and other Canadian citizens feared expulsion.

In the same cable, Petro-Canada manager Duncan reported that the project to provide 50 members of Petro-Canada staff to work in Harouge in order to provide on-the-job training and share new technologies such as enhanced oil recovery (EOR) and improved oil recovery (IOR), had experience mixed results. Duncan appeared skeptical whether the Libyans wanted the advice, and commented that the Libyan middle-managers of NOC-owned companies projected the attitude that Libya had continued to produce oil during the embargo 'just fine' and if need be, could do so again.

In Feburary 2011, Suncor evacuated all of it expatriate staff in Libya and shut down field operations in the face of the unrest. In June of the same year, CEO Richard George commented that Suncor would not return to Libya until Muammar Gaddafi had been removed from power. This was following statements from government officials that Canada would officially recognise the National Transitional Council (NTC) in Libya. In early September 2011, Canada announced the lifting of sanctions on Libya. Harouge began re-starting production in late 2011 and as of September 2012 Suncor's working interest production from LIbya was approximately 39,800 bpd. The company announced it was "cautiously optimistic" about a full return to business in Libya.

=Activities and contracts=

Prior to the 2011 revolution, Suncor had significant onshore acreage holdings in Libya, which it had acquired through predecessor companies. Exploration and Production Sharing Agreements (EPSAs) were signed in 2008, providing access to production over the next 25 years through the redevelopment of existing fields, as well as opportunities to explore in the hydrocarbon-rich Sirte basin. In addition to ongoing production through Harouge, Suncor was the EPSA exploration operator and as of late 2011 had acquired 15,000 square kilometres of new 3D seismic data. The company has also embarked on a project to drill 49 exploration/appraisal wells.

=References=