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development areas, which cover more than 300,000 acres. majority of its remaining conventional natural gas business

Suncor conducts its Syrian operations pursuant to a PSC, for $1 billion prior to closing adjustments and other closing
under which the company is a co-owner of the Ebla project costs. Following these disposals, the retained assets

with the General Petroleum Corporation (GPC). Under the produce approximately 3 mboe/d of gas and 2 mbbl/d
PSC, the company pays 100% of the development costs of liquids.

and recovers these costs from a 40% share of production Natural gas extracted from the wellhead requires further
after deduction for royalties of 12.5%. This petroleum
processing. Suncor currently operates one natural gas
revenue is referred to as Cost Recovery petroleum. The processing plant at Wilson Creek (52.17% working interest
amount by which Cost Recovery petroleum exceeds
ownership), with total licensed capacity of 34.6 mmcf/d,
recoverable cost is referred to as Excess Cost Recovery (18.1 mmcf/d net). Capacity not utilized by the company’s
petroleum; 50% of this amount is due to the GPC and the
own production is optimized through processing
remaining 50% is shared between Suncor and the GPC agreements with third-party producers.
according to a profit-sharing schedule. The Ebla PSC
Natural gas production from Alberta is typically sold at the
expires in April 2035, but includes a five-year extension
subject to GPC approval. First commercial gas production Nova Inventory Transfer point (NIT), which is one of the
from Ebla was achieved in April 2010 and first oil was largest natural gas trading hubs in North America. Natural

achieved in December 2010.
gas at NIT generally receives a daily or monthly average
AECO (Alberta) spot price. Natural gas production from
The Ebla project comprised six natural gas wells in the Ash B.C. is typically sold at Station 2, part of the Spectra B.C.
Shaer field, a gas gathering and compression station,
transmission system, and receives the Station 2 Gas Daily
approximately 80 km of pipeline, and a gas treatment Index price. Suncor holds firm capacity on the TransCanada
plant. The facility is designed to produce 97 mmcf/d of
PipeLines Gas Transmission Northwest Pipeline (GTN). The
natural gas, along with related LPG and condensate GTN firm capacity enables Suncor to deliver natural gas to
volumes. The company has a contracted volume of
the Pacific Northwest and California markets.
80 mmcf/d. Natural gas was delivered into the Syrian
national gas grid for domestic electrical power generation. Crude oil production from North America Onshore assets is
shipped on pipelines operated by independent pipeline
The Ebla project also included three crude oil wells.
companies. In most sales arrangements, Suncor is
In 2012, the company recorded an impairment charge responsible for transportation to the point of sale.
against its Syrian assets as a result of the uncertainty about
In addition, Suncor holds assets that allow the company to
the company’s future in the country. Later in the year, the
company received proceeds from risk mitigation explore long-term supply opportunities in northern frontier
areas, such as the Arctic Islands.
instruments related to its Syrian assets, which are subject to
a provisional repayment should operations in Syria resume
Sales of Principal Products
and loss of value is determined not to be permanent.
Oil and gas production from East Coast Canada, the North
Suncor impaired the remaining carrying value of its Syrian Sea, and from North America Onshore is either marketed
assets in the fourth quarter of 2013, resulting in an
by our Energy Trading business, acting as a marketing
after-tax impairment charge of $422 million, as there has agent or sold to our Energy Trading business, which then
been no resolution of the political situation resulting in
markets the products to customers under direct sales
rising uncertainty with respect to the company’s return to arrangements. Suncor does not typically enter into
operations. Concurrently, the company recognized risk
long-term supply arrangements to sell its production from
mitigation proceeds, received in 2012, of $300 million its Exploration and Production segment. Contracts for these
($223 million after-tax) in net earnings. These were
direct sales arrangements are of varied terms, with a
previously recorded as a long-term provision.
majority having terms of one year or less, and incorporate

pricing that is generally determined on a daily or monthly
North America Onshore – Assets and Operations
basis in relation to a specified market reference price.
The North America Onshore business explores for, develops
In Libya, prior to the shut in of production, crude oil was
and produces natural gas, NGLs, crude oil and byproducts
in Western Canada. After the merger with Petro-Canada, marketed by the NOC on behalf of Suncor. In Syria, prior
to the suspension of operations, the company entered into
the strategy for this business focused on liquids-rich and
unconventional sources. As a result, the company divested purchase and sale agreements with the Syrian government
for all hydrocarbon production from the Ebla project.
a number of non-core assets in this business area
throughout 2010 and early 2011 and, in 2013, sold the

SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014 21