Bloomberg News

Suncor to Cancel Syria Supply Contracts, Withdraw Workers

December 12, 2011

(Updates with company comment in third paragraph.)

Dec. 11 (Bloomberg) -- Suncor Energy Inc. plans to withdraw workers from Syria and cancel supply contracts following sanctions imposed on the country by the European Union.

Natural-gas operations with General Petroleum Corp. in Syria were suspended, Calgary-based Suncor said today in statement. The company said it plans to withdraw expatriate employees and retain Syrian workers. Targets for total production this year and next haven’t been adjusted, Suncor said.

“These actions are taken as result of sanctions” announced by the EU on Dec. 2, Suncor said in the statement. “Management is not changing total production guidance because Libyan production is ramping up and was not included in the existing guidance.”

The U.S., EU and the Arab League are increasing economic and political pressure on President Bashar al-Assad to end violence that risks tipping Syria into a civil war as soldiers defect and take up arms against the government. More than 40 people have been killed over the past two days after security forces opened fire on demonstrators in several cities.

Earlier this year, Suncor wrote down C$514 million ($502 million) for business in Libya following political turmoil in the North African nation. The company is preparing to resume operations there, Chief Executive Officer Rick George said last month.

The company supplies about 10 percent of Syria’s gas consumption.

--Editors: Patrick McKiernan, Sylvia Wier

To contact the reporter on this story: Jeremy van Loon in Calgary at jvanloon@bloomberg.net.

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net


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