Page 12 - AIF - English

GENERAL DEVELOPMENT OF THE BUSINESS

Three-Year History
Consequently, the company ceased recording all

2011
production and revenue associated with its Syrian
assets. During 2012, the company received proceeds
• Exploration and Production segment created. In
from risk mitigation instruments related to its Syrian
assets, which are subject to a provisional repayment January, Suncor announced organizational changes that
included the former International and Offshore and
should operations in Syria resume.
Natural Gas business divisions merging into a single
organization primarily focused on conventional
2012
production, which includes both onshore and offshore
• Steve Williams appointed as Chief Executive operations.
Officer. In December 2011, Steve Williams, formerly
• Ethanol plant expansion completed. In January,
Suncor’s Chief Operating Officer (COO), was appointed
president and a member of the company’s Board of Suncor completed the expansion of its ethanol plant in
Ontario that doubled production capacity to
Directors, and assumed the role of Chief Executive
Officer (CEO) in May 2012. Prior to becoming COO, 400 million litres per year, making it the largest biofuels
production facility in Canada.
Mr. Williams served as Executive Vice President, Oil
Sands for four years where he was responsible for • Operations in Libya temporarily suspended. In

leading Suncor’s Oil Sands Operations through a response to political unrest and sanctions in Libya in
significant period of growth. Mr. Williams replaced the first quarter of 2011, the operator of the

Suncor’s long-standing CEO, Rick George, who retired company’s joint operations in Libya shut in production.
in May after more than 20 years leading the company.
As a result, Suncor suspended all exploration activities
and declared force majeure under its EPSAs. Sanctions
• TROoperations commissioned. Suncor completed
TM in Libya were eventually lifted when the country
installation of its tailings management assets. transitioned to a new government, and the operator
Infrastructure included pipes, pumphouses and fluid
transfer barges that (a) pump tailings water from was able to restart production from all major producing
fields in the first quarter of 2012. Production has since
extraction plants to a sand placement area, (b) pump
mature fine tailings from the sand placement area to a been suspended again due to the closure of export
terminal operations at eastern Libyan seaports as a
tailings pond for TROTM treatment, and (c) pump
treated water from tailings ponds back to extraction result of political unrest that began earlier in 2013.

plants for use in production processes. Through the • Successful completion of the Upgrader 2
TROprocess, mature fine tailings are converted more turnaround. During the second quarter, the company
TM
rapidly into a solid material suitable for reclamation. As completed the largest turnaround at its Upgrader 2
a result of this new technology and the company’s facilities in the company’s history.

capital investment to reconfigure its tailing operations, • New wind farms commissioned. In May, Suncor
Suncor has cancelled plans for five additional
commissioned the eight-turbine, 20-MW Kent Breeze
tailings ponds.
wind power project in southwest Ontario. In November,

• Off-station maintenance at East Coast Canada Suncor commissioned the 55-turbine, 88-MW
assets. The Floating Production, Storage and Wintering Hills wind power project in southern Alberta.

Offloading (FPSO) vessels for both Terra Nova and • Development of Golden Eagle approved. In the
White Rose were disconnected and transported to
third quarter, the field development plan for Golden
docking facilities for planned maintenance. The water Eagle in the U.K. sector of the North Sea was
injection swivel was replaced on the Terra Nova FPSO,
approved. The company anticipates first production late
while the propulsion system was repaired on the White in 2014 or early 2015.
Rose FPSO. The off-station maintenance program for
• North Steepbank extension. In December, the
Terra Nova also allowed the company to replace subsea
infrastructure to help mitigate hydrogen sulphide
company started mining ore from the North Steepbank
area at its Oil Sands Base operations. The opening of
(H2S) issues.
this new area enabled Suncor to access additional oil
• Growth at Firebag. Production from Firebag increased sands ore, decrease overall haul distances and decrease
to 104 mbbls/d, approximately 75% higher than the
mine congestion.
2011 production level. In 2012, Firebag Stage 3 central
processing facilities commissioned in the previous year • Operations in Syria suspended. In December,
sanctions were introduced that resulted in Suncor
reached design capacity approximately one year after
first oil was brought on-stream. Stage 4 central declaring force majeure under its contractual
obligations and suspending its operations in Syria.
processing facilities were commissioned in 2012, with

10 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014