Feds try to reclaim $347 million insurance payout to Suncor linked to Libya unrest

The Suncor Energy Centre picture in downtown Calgary, Alta., Friday, Sept. 16, 2022. The new top boss at Suncor Energy Inc. says he has a sharp focus on cost-cutting as he embarks on the task of improving performance at the oilsands giant. THE CANADIAN PRESS/Jeff McIntosh

VANCOUVER — The federal government is trying to reclaim $347 million in insurance paid to Suncor Energy Inc. in the wake of political unrest in Libya.

In a ruling this week, a Federal Court judge says the oil giant claimed $300 million in risk mitigation payments for losses linked to Libyan energy assets after fighting between rival political factions spread to the country’s oil crescent region in 2015.

But Export Development Canada, which insures against losses caused by political violence, says Suncor’s oil production facilities continue to boast significant value and generate revenue for the Calgary-based company.

The Federal Court ruling says Canada’s export credit agency wants to recover all $347 million, which includes interest, paid out in connection with the assets.

Suncor, which did not immediately respond to a request for comment, says on its website that operations there continue to be impacted by political unrest.

The decision from Monday also appoints an arbitrator to handle the case and denies a request from Suncor subsidiaries to be removed from it.

This report by The Canadian Press was first published Aug. 2, 2023.

Companies in this story: (TSX:SU)

The Canadian Press

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