Suncor Energy Inc. won't resume operations in Libya until there is regime change, the company's chief executive said Tuesday.
Rick George, head of Canada's largest oil and gas producer, made his remarks after a luncheon speech in Montreal.
"We will not go back into Libya as long as the Gadhafi regime is in place," George told reporters, referring to Libyan dictator Moammar Gadhafi.
"We are waiting to see how that all gets resolved and then we will determine" the course of action, he said.
Calgary-based Suncor shut its Libyan operations in February but hasn't yet written down the value of its Libyan assets, worth about $900 million.
George said the market has been alerted that the writedown may occur in the company's second quarter, but "a decision has not been taken."
The company's operations in Syria continue "as normal, without change," he said.
Other Canadian companies have also been sideswiped by fighting in Libya, putting projects on ice and extracting workers.
Montreal-based engineering giant SNC-Lavalin has suspended several projects in the country, including contracts to oversee the construction of a large water pipeline, an airport and the construction of a prison.
Pure Technologies Ltd. of Calgary also withdrew expatriate personnel in the spring. The company's main focus in Libya is pipelines which supply drinking water to Libya's major cities and irrigation works.
Halliburton said Monday in its second quarter earnings report that its first quarter results were reduced by $46 million due to sanctions imposed on Libya.
The interruption of Libyan oil exports because of civil war prompted a large drop in profit for ConocoPhillips in the second quarter.
Calgary-based Suncor shut its Libyan operations in February but hasn't yet written down the value of its Libyan assets, worth about $900 million.
Originally posted by Firefly_
reply to post by incrediblelousminds
It doesnt surprise me other oil companies are losing out, after all it is a competition. But the fact is BP are profiting, and the profits Shell are making are obscene. BP should not even be allowed to trade after the complete lack of regard they have shown for the environment. But as the golden rule states, he who has the gold makes the rules, and BP have plenty of the black variety.
Originally posted by kwakakev
reply to post by snowspirit
Calgary-based Suncor shut its Libyan operations in February but hasn't yet written down the value of its Libyan assets, worth about $900 million.
I have not heard of this one before. It is a very strong motivating factor behind the oil reasons for the war.
After it took over Petro-Canada in 2008, Suncor inherited a joint venture with a Libyan state-owned oil company that includes a significant position in onshore oilfields, which represented just one per cent of the company’s operating earnings last year and three per cent of assets.
The research analyst said when Suncor took over Petro-Canada, he had assumed the firm would one day drop the Libyan operations in favour of focusing on Alberta’s oilsands. “We are banking on, from some point, Libya ceasing to exist for Suncor,” Pendill said.
