Petro-Canada Highlights Strategy, Plans White Rose Start-Up in Early 2010

Petro-Canada's strategy is to create shareholder value by delivering long-term, profitable growth and improving the profitability of the base business. On March 23, 2009, the Company announced plans to merge with Suncor to create the premier Canadian energy company.

The Company continues to advance the three major growth projects previously sanctioned by the Company: the extension of the White Rose field off the East Coast of Canada; the Syria Ebla gas project; and the developments associated with the new Libya EPSAs. The other three major growth projects, MacKay River expansion, Fort Hills mining project and the Montreal coker, are not sanctioned by the Company and are on hold until the merger with Suncor is completed. After the close of the merger all capital projects for the merged company will be reviewed in the context of capital investment being directed toward projects with the strongest near-term cash flow potential, highest anticipated return on capital and lowest risk.

Petro-Canada continually works to strengthen its base business by improving the safety, reliability and efficiency of its operations and is focused on delivering upstream production in line with guidance.


Operational Updates

  • Terra Nova successfully completed a nine-day turnaround in the second quarter of 2009 and is planning a 21-day turnaround in the third quarter of 2009 to complete planned regulatory and maintenance scope.
  • White Rose is planning a 28-day regulatory and maintenance turnaround in the third quarter of 2009, followed by a further period of reduced production, lasting approximately 40 days, to do subsea work associated with the tie-in of the North Amethyst project.
  • Buzzard is planning a 28-day turnaround in the third quarter of 2009 to do regulatory work and to complete tie-ins for the enhancement project. Production will be reduced for a further 14 days during the third quarter due to maintenance work on the Forties pipeline system.
  • Syncrude is planning a 15-day turnaround in the third quarter of 2009 that will be significantly smaller in scope than the spring turnaround.
  • MacKay River is planning a 14-day slowdown in the third quarter of 2009 for planned maintenance of the third-party co-generation unit.

Major Project Update

  • Development drilling has commenced and installation of subsea infrastructure is underway for the North Amethyst portion of the White Rose Extensions, with the project on schedule to deliver first oil in early 2010. The West White Rose development will be divided into two stages. Stage 1 was approved in the second quarter of 2009 and development drilling and subsea installation of this stage will take place in 2010, with first oil expected in late 2010 or early 2011. Results of Stage 1, combined with ongoing evaluation, will help define the scope of Stage 2.
  • In the second quarter of 2009, co-venturers in the ExxonMobil Canada Properties (ExxonMobil) operated Hibernia South project signed a non-binding Memorandum of Understanding (MOU) with the Government of Newfoundland and Labrador establishing the key fiscal, equity and operational principles for the development of the Hibernia Southern Extension satellite (Petro-Canada's working interest is 20%), with anticipated production starting in late 2009 or early 2010.
  • The Syria Ebla gas project is on plan and was 70% complete at the end of the second quarter of 2009. Three wells have been drilled and handed over to the engineering, procurement and construction contractor for tie-in. The 910 km2 Ash Shaer 3D seismic shoot was completed in the second quarter of 2009 and the seismic crew moved on to Petro-Canada Cherrife acreage. First gas is expected in mid-2010.
  • Following the signing of the new Libya EPSAs, work has commenced with a focus on preparing the Amal field development program and initiating the new exploration program. Seismic operations continued in the second quarter of 2009, with approximately 55% of the program completed at the end of the second quarter.