Suncor to avoid Libya until Gadhafi leaves
The CEO of Calgary-based Suncor Energy said Tuesday the Canadian oil giant may announce a write down of its operations in the war-torn country as early as next month.
Speaking in Montreal, Rick George also said Suncor won't return to Libya while the Gadhafi regime remains in power.
Suncor has previously said it expects a production cut of 30,000 barrels of oil per day because of continuing unrest in the North African country. Libya accounted for just one per cent of Suncor's earnings in 2010.
Suncor reports its second-quarter results July 28.
Its shares closed up 80 cents, or 2.1 per cent, at $38.39 on the Toronto Stock Exchange.
Suncor inherited the Libyan oil properties when it merged with Petro-Canada in 2009.
It also acquired then its natural gas operations in Syria, where production remains unaffected despite violent clashes between the Damascus government and protesters.
Suncor announced its position on the same day the Canadian government told Parliament that it will formally recognize the Libyan rebels as the legitimate government of the country and true representatives of the Libyan people.
Foreign Affairs Minister John Baird's announcement of the policy shift Tuesday came as the Commons opened a day-long debate on extending Canada's military commitment to the NATO-led mission in Libya.
With files from The Canadian Press