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EXPLORATION AND PRODUCTION
towards advancing projects within the Exploration and
Production segment. Building on the major milestones
reached in 2013, growth capital targeted towards the
Golden Eagle project is expected to take the project to first
oil by late 2014 or early 2015. Drilling operations are
expected to commence in early 2014. The Hebron project
remains on target for first oil in 2017; detailed engineering
and construction of the gravity-based structure and
topsides will continue in 2014.
The company has multiple field extension projects
underway which leverage existing facilities and
infrastructure. Following the completion of subsea
installation for the HSEU in 2013, drilling activities began in
early 2014. The project is expected to increase overall
production and extend the productive life of the Hibernia 2013 Highlights
field starting in 2015. The subsea installation for the South
White Rose Extension (SWRX) project commenced in 2013 • The Exploration and Production segment continued to
generate significant cash flow for Suncor. Under its
and first oil is expected in late 2014 or early 2015. A
sanction decision for further expansion into the western current portfolio of assets, the segment is realizing
Brent-based pricing for almost all of its production,
portion of the White Rose field is targeted for 2014.
compared to approximately 70% in 2012.
The company continues to evaluate offshore exploration
prospects in the U.K. North Sea, Norway, and East Coast • In 2013, Suncor completed the sale of the remaining
portion of its conventional natural gas business for
Canada basins. The company’s exploration strategy is
primarily concentrated on reviewing and evaluating $1 billion, before closing adjustments and other closing
costs, which represented a major milestone in the
concentric growth opportunities around existing
infrastructure. The company continues to increase its repositioning of the Exploration and Production
portfolio.
presence in Norway with a current portfolio of 19 licences,
where Suncor is operator for eight of these licences. • Suncor successfully completed a ten-week off-station
Significant discoveries currently under appraisal include the maintenance event at Terra Nova, which included
Beta project where Suncor is the operator and the Butch preventive maintenance that is expected to contribute
project where Suncor is a non-operator. Appraisal wells for to improved reliability in 2014.
both projects are planned for 2014.
• The company’s Libyan operations were impacted by
In 2013, Suncor received extensions on exploration political unrest, which limited production and liftings in
commitments under its EPSAs in Libya to reflect the period 2013. Suncor continued to progress its exploration
that the contracts were suspended due to force majeure. In program and continued field activities
throughout 2013.
early 2014, an additional one-year extension to April 2015
was approved by the NOC, with formal extension • Operations in Syria remained suspended throughout
agreements to follow later in 2014. The terms of the EPSAs 2013 as a result of continued political unrest and
allow for further extensions to be negotiated.
international sanctions against that country.
Following the disposition of the remaining portion of the • Growth projects progressed well in 2013, including
company’s conventional natural gas business in 2013, major milestones reached for the Golden Eagle project
properties in the North America Onshore business include such as the installation of both jackets and the
high-quality unconventional oil and natural gas properties wellhead topside, as well as the installation of the
in central Alberta and northeast B.C.
subsea infrastructure. Following the sanction decision
for the Hebron project in 2012, construction of the
gravity-based structure and topsides began in 2013.
Strategy and Investment Update
With a suite of high-return development projects, Suncor
has earmarked almost half of its total growth capital
SUNCOR ENERGY INC. ANNUAL REPORT 2013 35
