Page 74 - AIF - English

RISK FACTORS

U.S. In addition, as a result of activities in these areas and expenditures, the operator’s expertise, financial resources

a continuing evolution of an international framework for and risk management practices, the approval of other
corporate responsibility and accountability for international participants, and the selection of technology.

crimes, the company could also be exposed to potential These co-owners may have objectives and interests that do
claims for alleged breaches of international law.
not coincide with and may conflict with Suncor’s interests.
In response to international sanctions and escalating Major capital decisions affecting joint arrangements may

political unrest in Syria, Suncor declared force majeure in require agreement among the co-owners, while certain
December 2011, withdrew its expatriate staff and stopped operational decisions may be made solely at the discretion
recording production from Syria. Since this time, the of the operator of the applicable assets. While the partners

company’s prospects for resuming operations in Syria have generally seek consensus with respect to major decisions
not improved. As a result, Suncor recorded impairment concerning the direction and operation of the assets and

charges against its assets in Syria in 2012 and then the development of projects, no assurance can be provided
completely impaired the assets in 2013. In 2013, the that the future demands or expectations of the parties

company also recorded an after-tax impairment charge of relating to such assets and projects will be met satisfactorily
$101 million against its assets in Libya due to an extended or in a timely manner. Failure to satisfactorily meet

loss of production, and uncertainty around return to demands or expectations by all of the parties may affect
operations arising from continued political unrest which our participation in the operation of such assets or in the

began in mid-2013. There is no assurance as to if or when development of such projects, our ability to obtain or
Suncor’s operations in either Syria or Libya will resume or maintain necessary licences or approvals, or the timing for

return to previous levels. Further, Suncor has not received undertaking various activities. In addition, disputes may
signed agreements for the exploration period extension to arise pertaining to the timing and/or capital commitments

April 12, 2015 under its Libyan EPSAs. Until these signed with respect to projects that are being jointly developed,
agreements are received, there remains a risk that Suncor’s which could materially adversely affect the development of

exploration period is not extended.
such projects and Suncor’s business and operations.

The impact that future potential terrorist attacks, regional
hostilities or political violence may have on the oil and gas EH&S Regulatory Non-Compliance
The company is required to comply with a large number of
industry, and on our operations in particular, is not known
at this time. This uncertainty may affect operations in EH&S regulations under a variety of Canadian, U.S., U.K.
and other foreign, federal, provincial, territorial, state and
unpredictable ways, including disruptions of fuel supplies
and markets, particularly crude oil, and the possibility that municipal laws and regulations, some of which are
described in the Industry Conditions – Environmental
infrastructure facilities, including pipelines, production
facilities, processing plants and refineries, could be direct Regulation section of this AIF. Failure to comply with these
regulations may result in the imposition of fines and
targets of, or collateral damage of, an act of terror, political
violence or war. Suncor may be required to incur significant penalties, production constraints, reputational damage,
costs in the future to safeguard our assets against terrorist operating and growth permit applications, censure, liability

activities or to remediate potential damage to our facilities. for cleanup costs and damages, and the loss of important
There can be no assurance that Suncor will be successful in licences and permits, which could also have a material
adverse effect on Suncor’s business, financial condition,
protecting itself against these risks and the related financial
consequences.
results of operations and cash flow. Compliance can be
affected by the loss of skilled staff, inadequate internal

Co-owner Management
processes and compliance auditing.

Suncor has entered into joint arrangements and other
contractual arrangements with third parties with respect to Permit Approvals
Before proceeding with most major projects, including
certain of its projects where other entities operate assets in
which Suncor has ownership or other interests. Suncor’s significant changes to existing operations, Suncor must
obtain various federal, provincial or state permits and
dependence on its co-owners and its constrained ability to
influence operations and associated costs could materially regulatory approvals. Suncor must also obtain licences to
operate certain assets. These processes can involve, among
adversely affect Suncor’s business, financial condition,
results of operations and cash flow. The success and timing other things, stakeholder consultation, environmental
impact assessments and public hearings, and may be
of Suncor’s activities on assets and projects operated by
others, or developed jointly with others, depend upon a subject to conditions, including security deposit obligations
and other commitments. Suncor can also be indirectly
number of factors that are outside of Suncor’s control,
including the timing and amount of capital expenditures, impacted by a third party’s inability to obtain regulatory
approval for a shared infrastructure project.
the timing and amount of operational and maintenance

72 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014