Suncor’s Libyan adventure keeps going from bad to worse after the federal government attempts to recover a $347 million insurance payout related to unrest in the North African country..On Monday, a federal judge appointed an arbitrator to review details of a $300 million insurance claim filed in 2015 after civil war shut the Calgary-based company’s oil production there. . Suncor LibyaSuncor’s Libyan oil facilities. .Now Export Development Canada, the federal agency that insures against losses caused by political violence, wants its money back — plus interest — claiming the assets “continue to have significant value and generate revenue for Suncor and its subsidiaries” via exploration and production sharing agreements with the Libyan government, according to court filings..The EDC claim was paid under a policy underwritten for Petro-Canada in 2006, which Suncor then assumed following their merger in 2009. .Oil operations were suspended following the Arab Spring uprising and subsequent assassination of Muammar Gaddafi in 2011, sparking a broader civil war..Exploration in Libya was put on hold at that time when Suncor declared force majeure status due to the conflict. However, that period under its contractual obligations has since ended and Suncor said it has restarted limited exploration activities..Suncor hasn’t responded to the claim but still lists “significant” Libyan onshore acreage holdings on its web site. Suncor has a 49% interest in the state-owned Harouge Oil Operations joint venture dating back to 2008..“These (contracts) could provide access to significant production over the next 25 years, access to low-cost production growth opportunities through the redevelopment of existing fields, as well as opportunities to explore in the prolific Sirte Basin,” it said..Nonetheless, “as of the end of 2015, production in Libya remains substantially shut-in given the political unrest. The timing of a return to normal operations remains uncertain,” it said..In November, the LibyanExpress news site reported that representatives of its state National Oil Corporation held a technical meeting with Suncor representatives to discuss the resumption of exploration activity sometime in 2023.
Suncor’s Libyan adventure keeps going from bad to worse after the federal government attempts to recover a $347 million insurance payout related to unrest in the North African country..On Monday, a federal judge appointed an arbitrator to review details of a $300 million insurance claim filed in 2015 after civil war shut the Calgary-based company’s oil production there. . Suncor LibyaSuncor’s Libyan oil facilities. .Now Export Development Canada, the federal agency that insures against losses caused by political violence, wants its money back — plus interest — claiming the assets “continue to have significant value and generate revenue for Suncor and its subsidiaries” via exploration and production sharing agreements with the Libyan government, according to court filings..The EDC claim was paid under a policy underwritten for Petro-Canada in 2006, which Suncor then assumed following their merger in 2009. .Oil operations were suspended following the Arab Spring uprising and subsequent assassination of Muammar Gaddafi in 2011, sparking a broader civil war..Exploration in Libya was put on hold at that time when Suncor declared force majeure status due to the conflict. However, that period under its contractual obligations has since ended and Suncor said it has restarted limited exploration activities..Suncor hasn’t responded to the claim but still lists “significant” Libyan onshore acreage holdings on its web site. Suncor has a 49% interest in the state-owned Harouge Oil Operations joint venture dating back to 2008..“These (contracts) could provide access to significant production over the next 25 years, access to low-cost production growth opportunities through the redevelopment of existing fields, as well as opportunities to explore in the prolific Sirte Basin,” it said..Nonetheless, “as of the end of 2015, production in Libya remains substantially shut-in given the political unrest. The timing of a return to normal operations remains uncertain,” it said..In November, the LibyanExpress news site reported that representatives of its state National Oil Corporation held a technical meeting with Suncor representatives to discuss the resumption of exploration activity sometime in 2023.
