Libyan Operations

12 Months Ended

Dec. 31, 2011

Libyan Operations [Abstract]

Libyan Operations

3. Libyan Operations

In response to civil unrest in Libya, a number of measures were taken by the international community in the first quarter of 2011, including the imposition of economic sanctions. Production at the Waha Field was suspended in the first quarter of 2011. As a consequence of the civil unrest and the sanctions, the Corporation delivered force majeure notices to the Libyan government relating to the agreements covering its exploration and production interests in order to protect its rights while it was temporarily prevented from fulfilling its obligations and benefiting from the rights granted by those agreements. Production at the Waha Field restarted during the fourth quarter of 2011 at levels that were significantly lower than those prior to the civil unrest. The Corporation’s Libyan production averaged 23,000 barrels of oil equivalent per day (boepd) for the full year of 2010 and 4,000 boepd for 2011. The force majeure covering the Corporation’s production interests was withdrawn at the end of the fourth quarter of 2011, as the economic sanctions were lifted. The force majeure covering the Corporation’s offshore exploration interests remained in place at year-end but is expected to be withdrawn in 2012. The Corporation had proved reserves of 166 million barrels of oil equivalent in Libya at December 31, 2011. At December 31, 2011, the net book value of the Corporation’s exploration and production assets in Libya was approximately $500 million.