Imperial Oil Annual Report 2012

FY2012 Annual Report · Imperial Oil

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I M P E R IA L OI L L I M I T E D
2 0 1 2 SUM M A RY A N N UA L R E P ORT
Responsible Growth

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Imperial Oil Limited (Imperial)
is one of Canada’s leading companies.
It is a significant producer of crude oil
and natural gas, Canada’s major
petroleum refiner, a key petrochemical
producer and a national marketer with
coast-to-coast supply and retail networks.

Table of contents

2 0 1 2 Y E A R I N R EV I EW

L E T T E R T O SHA R E HO L D E R S

O P E R AT I N G H IG H L IG H T S

F I NA N C IA L H IG H L IG H T S

U P ST R E A M

D OW N S T R E A M

C H E M IC A L

K E A R L F E AT U R E

S O LV E N T T E C H N O L O G I E S F E AT U R E

F I NA N C IA L SUM M A RY

F R E QU E N T LY U SE D T E R M S

I N F O R M AT IO N F O R I N V E ST O R S

D I R E C T O R S A N D O F F IC E R S

Imperial online

Imperial’s website provides services
to investors, customers and other
interested parties. The information
for investors section offers a
complete range of investor news,
reports and presentations. The home
page features regular share price
updates from the Toronto Stock
Exchange, as well as news highlights
and easy links to a variety of other
corporate information.
www.imperialoil.ca

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Forward-looking statements

Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-
looking statements. Actual future results, including demand growth and energy source mix; production growth and mix; project plans, dates,
costs and capacities; production rates and resource recoveries; cost savings; product sales; financing sources; and capital and environmental
expenditures could differ materially depending on a number of factors, such as changes in the price, supply of and demand for crude oil, natural
gas, and petroleum and petrochemical products; political or regulatory events; project schedules; commercial negotiations; the receipt, in a timely
manner, of regulatory and third-party approvals; unanticipated operational disruptions; unexpected technological developments; and other factors
discussed in this report and Item 1A of Imperial’s most recent Form 10-K. Forward-looking statements are not guarantees of future performance
and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Imperial.
Imperial’s actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned
}not to place undue reliance on them.

The term “project” as used in this report does not necessarily have the same meaning as under SEC Rule 13q-1 relating to government payment
reporting. For example, a single project for purposes of the rule may encompass numerous properties, agreements, investments, developments,
phases, work efforts, activities and components, each of which we may also informally describe as a “project.”

Reserves and contingent resource information presented in this report are an estimate of the company’s net interest after royalties at year-end
2012, as determined by Imperial’s internal qualified reserves evaluator. Contingent resources are those quantities of petroleum considered to
be potentially recoverable from known accumulations using established technology or technology under development, but are currently not
considered to be commercially recoverable due to one or more contingencies. Contingencies on resources may include, but are not limited
to, factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be
economically viable or technically feasible to produce any portion of the resource.

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2012 year in review

• Responsible growth is the key to Imperial’s long-term
success. Imperial is reducing environmental impact
and lowering development costs through technology
innovation and operational excellence.

•

Imperial maintained its balance sheet flexibility at a time
of record investments in company growth projects.

• All three of its businesses – Upstream, Downstream and

Chemical – delivered excellent results, allowing the company
to fund its unprecedented growth mostly with cash flow
from operations.

•

The company continued to advance breakthrough research
to reliably deliver affordable energy from the oil sands in
a responsible manner.

C A P I TA L A N D E X P L O R AT IO N
E X P E N D I T U R E S
millions of dollars

N E T E A R N I N G S
millions of dollars

R E T U R N O N C A P I TA L
E M P L OY E D ( R O C E )
percent

6 000

4 000

2 000

4 000

3 000

2 000

1 000

Completed a $5.7 billion capital and
exploration program focused on advancing
major Upstream projects.

Imperial achieved its second highest
earnings in 2012.

ROCE is a key measure of success in a long-
term capital intensive industry and Imperial
continues to have a leading ROCE relative
to its peers.

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2012 SUMMARY ANNUAL REPORTTo our shareholders

Outstanding results backed by a commitment
to responsible growth

Imperial continues to deliver superior long-term shareholder value by leveraging its competitive advantages
of disciplined investing, development of innovative technologies and operational excellence. These competitive
advantages, combined with a commitment to responsible growth, position the company well to meet its plan
of doubling Upstream production.

to grow, while maintaining
financial flexibility to capture new
opportunities when they arise.

In 2012, capital and exploration
expenditures were $5.7 billion.
We anticipate 2013 capital
expenditures to be about $7 billion.
Most of the current capital
expenditures program has been
for the Kearl oil sands project,
the largest initiative the company
has ever undertaken. The start-up
of the initial phase is the first major
milestone on our path to producing
345,000 barrels per day of bitumen
(245,000 barrels per day Imperial’s
share) at Kearl.

Although the capital cost of the
initial development is higher
than we had forecast when we

Our ability to maintain a relentless
focus on operational excellence
and disciplined management of our
integrated business has produced
another year of outstanding results.

on average capital employed,
considered the best measure of
capital efficiency, was 23 percent,
down from 25 percent in 2011
despite continued large capital

As always, the safety of our
workforce and the public comes
first. Our employees and
contractors continued to deliver
industry-leading safety results
during 2012 through a period
of increased activities. After
disappointing safety results in
2011, we achieved a best-ever
2012 performance in a number
of areas.

Second-highest earnings of
$3.8 billion, up from last year’s
$3.4 billion, were underpinned
by best-ever Downstream
and Chemical results. Return

Indicative of our long-life oil sands assets,
Kearl will be a major earnings contributor
for decades.

expenditures. Cash flow from
operations and asset sales was
$4.9 billion.

These strong results underscore
the value of Imperial’s long-term,
proven business approach of
focusing on the business elements
we can control and making
disciplined investment decisions

sanctioned the project in 2009,
future phases of Kearl will be less
capital intensive. Indicative of our
long-life oil sands assets, Kearl will
be a major earnings contributor
for decades. The special feature
article in this report (pages 14-19)
provides more detail about this
groundbreaking project and the
people behind it.

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2012 SUMMARY ANNUAL REPORTIn the development of any energy resource,
the goal must be to balance economic, social
and environmental responsibilities.

sands. Today, no energy resource
is perfect in this regard but we
believe our development in
Canada’s oil sands achieves a good
balance of these responsibilities.

Canada’s oil sands have the
immense scale to provide energy
resources for decades. They also
represent compelling economic
and social benefits for Canadians.
The industry continues to use
innovative technology to reduce
the environmental impacts of oil
sands development. As history
demonstrates, we can and will
do more.

Technology remains vital to
meeting the challenge of
responsible growth in Canada’s
oil sands. Another feature story
(pages 20-24) on the use of
solvents in oil sands extraction
expands on this drive to improve
both the environmental performance
and the economics of current
and future developments. It also
highlights Imperial’s position as a
pioneer and the leading technology
innovator in the oil sands.

Imperial holds an extensive
and attractive portfolio of future
development opportunities with
a proved and non-proved resource
base of 16 billion oil-equivalent
barrels. This includes holdings in
the oil sands, unconventional areas
of Cardium tight oil and Horn River
natural gas, the Mackenzie Delta
and the Beaufort Sea.

Canada and Imperial are poised to
contribute to meeting the world’s
growing energy needs. Our
capable and motivated workforce
has always made our company
great. Employees’ dedication
continues to set us apart from
industry competition, allowing
us to offer rewarding careers
and attract top talent and, as a
result, generate superior returns
for you, our shareholders. We
are well positioned for a future of
responsible and profitable growth.

Bruce March
Chairman, President and CEO

The theme of our 2012 report is
responsible growth, and it is the
key to our long-term success.
As conventional crude oil and
natural gas production declines,
we believe that in order to provide
the affordable and reliable energy
the world needs, investing in and
developing Canada’s oil sands is
a logical part of the answer.

In the development of any energy
resource, the goal must be to
balance economic, social and
environmental responsibilities. This
is true for all energy sources – from
renewable fuels to Canada’s oil

R E S OU R C E D EV E L O P M E N T
BU I L D I N G P R O DU C T IO N
VO LUM E
thousands of oil-equivalent barrels per day
before royalties

600

400

200

Imperial’s goal is to double production.

To be sanctioned

Under construction

Existing

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2012 SUMMARY ANNUAL REPORTOperating highlights

Focused on providing affordable, responsible energy

Management discipline

Responsible growth

Imperial’s focus on operational
excellence resulted in industry-
leading safety and environmental
performance, record Downstream
and Chemical earnings, and
sustained best-in-class reliability
at Cold Lake.

• We continue to make progress
toward “Nobody Gets Hurt.” In
2012, there were no employee
safety incidents that resulted
in lost time.

•

In 2012, more than 19,000
workers new to the Kearl
site received detailed safety
orientation. We had only one
contractor lost-time incident
at Kearl. The lost-time incident
rate was 0.01, which compares
to an Alberta oil and gas
industry average of about 0.50.

•

Spills and environmental
compliance incidents have
consistently improved and
continue to be industry-leading.

• Average daily production of

crude oil, natural gas and
natural gas liquids was
282,000 barrels of oil
equivalent per day before
royalties. Cold Lake continued
to operate with industry-
leading reliability, achieving
a production rate of
154,000 barrels per day.

Imperial’s four refineries
processed 435,000 barrels
per day of crude oil, achieving
an 86 percent utilization rate.
Petroleum product sales
volumes were 445,000 barrels
per day and gasoline sales
averaged 221,000 barrels
per day.

•

• By year-end, the construction

of the initial development of
the Kearl oil sands mining
project was complete and
start-up was underway.

• Construction of the

110,000-barrels-per-day Kearl
expansion was advanced in
2012, incorporating the design
and experience from the initial
development to lower cost and
achieve a late 2015 start-up.

•

The 40,000-barrels-per-day
Cold Lake Nabiye expansion
was 37 percent complete
by year-end. This project is
expected to be online by
late 2014.

The Horn River pilot (50:50
share with ExxonMobil
Canada) started up in the
third quarter of 2012, with
production of 30 million cubic
feet per day. Results over
the next few years will be
assessed to establish full-field
production economics.

Imperial began preparing the
regulatory applications for
new in situ oil sands projects
at Aspen (south of Kearl) and
Cold Lake Grand Rapids.

The Preliminary Information
Package outlining potential
Beaufort Sea exploration
activities and environmental
protection programs was
shared with communities
and stakeholders.

Industry-leading technologies

•

Kearl includes the first
commercial application of
Imperial’s patented paraffinic
froth treatment process, which

will produce saleable bitumen
without the need for an on site
upgrader. The result will be
increased reliability, reduced
GHG emissions, and lower
capital and operating costs.

• Other promising oil sands

technologies, such as solvent-
assisted steam-assisted
gravity drainage, cyclical
solvent process, non-aqueous
extraction and liquid addition
to steam to enhance recovery,
are discussed on pages 20-24.

Future plans

•

Imperial will be consolidating
its Calgary offices into a
new suburban campus-style
complex, with completion
expected by mid-2016.
The state-of-the-art facility,
designed to promote
collaboration, will have the
capacity to accommodate
about 3,000 staff.

Imperial announced its
intention to market the
Dartmouth refinery and related
supply terminals to prospective
buyers. The marketing effort
and evaluation of alternative
options, such as conversion
to a terminal, continues.
A decision is expected by
mid-2013.

Imperial acquired a 50-percent
participating interest in Celtic
Exploration Ltd. following
the close of its acquisition
by ExxonMobil Canada. This
occurred by means of a sale
of a 50-percent interest in
Celtic’s assets and liabilities
from ExxonMobil Canada to
Imperial, which represents
about a $1.6 billion investment
by Imperial.

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2012 SUMMARY ANNUAL REPORTFinancial highlights

Superior long-term shareholder value

•

Earnings of $3.8 billion or $4.42 per share, up from $3.4 billion
or $3.95 per share in 2011.

• Downstream and Chemical earnings of $1.9 billion were the

highest on record, demonstrating the benefit of integration.

•

Industry-leading return on capital employed of 23 percent,
even with significant investments in assets under construction.

• Annual per share dividends paid increased for the 18th year

in a row and totalled $398 million.

• Capital and exploration expenditures of $5.7 billion were primarily
targeted at advancing major growth projects. Expenditures in
2013 are expected to be about $7 billion, including about $1.6 billion
for the Celtic acquisition.

• Capital expenditures were primarily financed through internally

generated funds. Debt as a percent of total capital was nine percent.
Imperial maintained its AAA rating from Standard and Poor’s and
remains the only Canadian industrial company with this rating.

•

Imperial does not hedge the price of its production, use special-purpose
financial instruments, or off-balance-sheet financing structures.

I N C OM E P E R SHA R E
dollars per share – diluted

Imperial’s ability to leverage its integrated
business model improved earnings in 2012.

Financial highlights
(millions of dollars)

Operating revenues
Net income
Cash flow from operating activities and asset sales (a)
Cash and cash equivalents at year-end
Total debt at year-end
Average capital employed (b)
Capital and exploration expenditures
Dividends paid

2012

2011

2010

2009

2008

31 053
3 766
4 906
482
1 647
16 302
5 683
398

30 474
3 371
4 803
1 202
1 207
13 261
4 066
373

24 946
2 210
3 351
267
756
10 791
4 045
356

21 292
1 579
1 658
513
140
9 432
2 438
341

31 240
3 878
4 535
1 974
143
8 684
1 363
330

(a) The definition of cash flow from operating activities and asset sales can be found on page 31.
(b) The definition of average capital employed can be found on page 30.

Key financial ratios

Net income per share – diluted (dollars) (a)
Return on average capital employed (percent) (b)
Return on average shareholders’ equity (percent) (c)
Annual shareholders’ return (percent) (d)
Debt to capital (percent) (e)
Dividends per share (dollars)

2012

2011

2010

2009

2008

4.42
23.1
25.4
(4.8)
9
0.48

3.95
25.4
27.5
12.9
9
0.44

2.59
20.5
21.4
0.9
7
0.43

1.84
16.8
17.1
0.2
2
0.40

4.36
44.7
45.7
(24.3)
2
0.38

(a) Calculated by reference to the average number of shares outstanding, weighted monthly on page 29.
(b) The definition of return on average capital employed can be found on page 30.
(c) Net income divided by average shareholders’ equity on page 27.
(d) Includes share appreciation and dividends.
(e) Current and long-term portions of debt (page 27) and the company’s share of equity company debt, divided by debt and shareholders’ equity (page 27).

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2012 SUMMARY ANNUAL REPORT
Strategies

• Maximize profitability of existing oil and

gas production

•

Identify and selectively capture the highest-
quality exploration opportunities

• Make disciplined investment in growth
projects that deliver superior returns

• Maximize resource value through high-

impact technologies

Jamie Alliban is a heavy equipment operator at Kearl.

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2012 SUMMARY ANNUAL REPORTUpstream

Imperial’s fundamental Upstream strategies guide our
exploration, development and production activities

Results and highlights

Resource base

Imperial’s Upstream business
focus is on developing one of
Canada’s leading oil and gas
resource positions. The company’s
goal is to double Upstream
production volumes by 2020.

The Upstream business continued
its superior operating performance
in 2012, generating earnings of
$1,888 million, cash flow from
operating activities and asset
sales of $2,772 million and a return
on capital employed of 13 percent.

Total produced volume before
royalty was 282,000 oil-equivalent
barrels per day of oil and gas.

Upstream capital and exploration
spending in 2012 totalled
$5.5 billion, with planned increases
to about $6.8 billion for 2013,
largely for continued investment
in growth projects and sustaining
capital for Syncrude. The planned
expenditures also include the
Celtic acquisition at about
$1.6 billion.

At a glance

Imperial’s total proved and non-
proved resource base is more than
16 billion oil-equivalent barrels, or
well over 100 years of production
at current levels.

In 2012, proved reserves
increases of 472 million barrels
of oil equivalent more than offset

production of 89 million barrels
of oil equivalent in the year.
The increases are primarily
associated with the Nabiye project
and increased development scope
at Cold Lake. Proved reserves
represent more than 40 years
of current production rates.

P R O DU C T IO N B Y S OU R C E
thousands of oil-equivalent barrels per day
before royalties

L IQU I D S / G A S SP L I T
percent

400

300

200

100

Conventional, NGLs and Natural Gas

Liquids production predominates.

Syncrude

Cold Lake

Natural Gas

Oil

2012

2011

2010

2009

2008

Net income (millions of dollars)
Cash flow from operating activities
and asset sales (millions of dollars)

Gross crude oil and NGL production (thousands of barrels a day)
Gross natural gas production (millions of cubic feet a day)
Average capital employed (millions of dollars)
Return on average capital employed (percent)
Capital and exploration expenditures (millions of dollars)

1 888

2 457

1 764

1 324

2 923

2 772
250
192
14 841
12.7
5 518

3 503
255
254
11 220
21.9
3 880

2 529
247
280
8 427
20.9
3 844

997
244
295
5 798
22.8
2 167

3 712
256
310
4 526
64.6
1 110

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2012 SUMMARY ANNUAL REPORT
As production from the mature
conventional resources of the Western
Canadian Sedimentary Basin declines,
developing and advancing an inventory
of major new projects will be key to
adding reserves and production growth.

SIG N I F IC A N T R E S OU R C E BA SE
billions of oil-equivalent barrels – 2012

Conventional,
including
frontier

In situ
oil sands

Minable
oil sands

Net production

Proved reserves (a)

Non-proved resources (b)

• Significant resource base of more than

16 billion oil-equivalent barrels.

• Proved reserves life index of greater

than 40 years.

• Non-proved resources of 13 billion

oil-equivalent barrels, of which more
than 11 billion barrels are oil sands.

(a) Reserves estimates based on SEC requirements.

For reserves calculated under National Instrument
51-101 (NI 51-101) requirements, please refer to the
company’s filing of its NI 51-101 data on the System
for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com.

(b) Pursuant to National Instrument 51-101 disclosure

guidelines, and using Canadian Oil and Gas Evaluation
Handbook definitions, Imperial’s non-proved resources
contain both probable reserves and “contingent
resource.” Such resources are an estimate of the
company’s net interest after royalties at year-end
2012, as determined by Imperial’s internal qualified
reserves evaluator. Contingent resources are
considered to be potentially recoverable from
known accumulations using established technology
or technology under development, but are currently
not considered to be commercially recoverable due
to one or more contingencies. Contingencies on
resources may include, but are not limited to, factors
such as economic, legal, environmental, political and
regulatory matters or a lack of markets. There is no
certainty that it will be economically viable or technically
feasible to produce any portion of the resource.

Oil sands

Imperial pioneered oil sands
development, and holds a major
position with more than 11 billion
barrels of non-proved oil sands
resource.

Cold Lake is Canada’s largest in
situ oil sands operation, and in
2012, annual production was an
average 154,000 barrels per day
before royalty, down from the
record 160,000 barrels per day
in 2011, largely because of the
cyclic nature of production.
Cumulative production is well
over one billion barrels.

In 2012, Imperial advanced
construction of the 40,000-barrels-
per-day Cold Lake Nabiye expansion.

The design includes a cogeneration
plant to improve efficiency, reduce
operating costs, and lower
greenhouse gas emissions.

Nabiye was 37 percent complete
by year-end and the project is
expected to be online by late 2014.

Syncrude is one of the world’s
largest oil sands operations, with
gross proved reserves of more
than 2.5 billion barrels of synthetic
crude oil. Imperial’s 25 percent
share of Syncrude production
in 2012 was 72,000 barrels per
day of synthetic crude oil before
royalty, which is equal to last
year. The focus at Syncrude
continues to be improving

reliability and cost performance.
Implementation of ExxonMobil’s
global reliability system and other
best practices continues. There
has been measurable progress in
some areas; however, the pace is
slower than anticipated due to the
complexity of the operation.

Kearl is the largest capital project
in Imperial’s history and makes
a substantial contribution to
the Canadian economy, both
provincially and federally. At an
average of $80 per barrel of West
Texas Intermediate, full-field
royalty and taxes are expected
to be $140 billion over the life
of the development.

The Kearl project (71 percent
Imperial, 29 percent ExxonMobil
Canada) will add 345,000 barrels
per day of bitumen supply
when fully constructed and
debottlenecked.

Imperial sanctioned the Kearl Initial
Development in May 2009 when
others suspended work, allowing
the company to secure top tier
contractors.

The concept of “design one,
build many” enables the Kearl
expansion project to reuse the
design and engineering from the
initial development. The expansion
will also use the same contractors,
capturing the experience from the
initial development and thereby
reducing costs. The expansion
will add 78,000 barrels per day
(Imperial’s share) and is scheduled
to start up in late 2015.

ExxonMobil’s major project
expertise provided significant
support to the construction and
start-up of Kearl. Configuring
the Kearl development so that
installations of infrastructure in

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2012 SUMMARY ANNUAL REPORTHorn River shale gas play in
northeastern British Columbia.
The Horn River pilot started up at
its design rate of 30 million cubic
feet per day. Pilot data will be used
to evaluate full field development
economics.

Northern opportunities

Imperial and its joint-venture
partners are assessing the
potential to conduct further
exploration in the Beaufort Sea
on licences that are held through
2019 and 2020.

In 2012, a Preliminary Information
Package outlining potential future
exploration activities on the
licences was developed to share
with communities and regulators
in the Inuvialuit Settlement Region.

As operator of the Mackenzie
Gas project, Imperial continues
to maintain the right-of-way
agreements and permits required
to develop Taglu and its three trillion
cubic feet (gross) of natural gas.

Imperial and ExxonMobil Canada
(50:50 share) are assessing the
440,000 net acres in the central
Mackenzie Valley near Norman
Wells, which were acquired in 2011.

In northeastern British Columbia and central Alberta, Imperial is safely and responsibly
extracting oil and gas from shale and other tight formations.

the initial development could
be efficiently used for future
expansions is one example.

Unconventional oil and gas

During 2012, Imperial drilled
16 tight oil wells on its existing
operated land holdings in central
Alberta. Production data from
these wells will be used to
evaluate further development.

In February 2013, Imperial
acquired a 50-percent participating
interest in Celtic Exploration
Ltd. for about $1.6 billion from
ExxonMobil Canada. Imperial’s
share of the acquisition includes

273,000 net acres in the Montney
play, 52,000 net acres in the
Duvernay shale and additional
acreage in other areas of Alberta.
This acquisition adds liquids-rich
natural gas resources to Imperial’s
unconventional portfolio.

Over the past two years, Imperial
and ExxonMobil Canada (50:50
share) acquired 87,000 net acres
in the liquids-rich Simonette area
in Alberta, adjacent to the Celtic
acreage.

Imperial and ExxonMobil
Canada (50:50 share) have
about 340,000 net acres in the

Net proved developed and undeveloped reserves (a) (b) (c) (f)

year ended

Liquids (d)
millions of barrels

Natural Gas
billions of cubic feet

Synthetic oil
(Syncrude)

millions of barrels

Bitumen
(Cold Lake and Kearl)
millions of barrels

Total
oil equivalent
basis (e)
millions of barrels

2008
2009
2010
2011
2012

64
63
57
55
53

593
590
576
422
488

734
691
681
653
599

1 437
1 661
1 715
2 413
2 841

2 334
2 513
2 549
3 191
3 574

(a) Net reserves are the company’s share of reserves after deducting the shares of mineral owners or governments or both. All reported reserves are located in Canada.
(b) For reserves calculated under National Instrument 51-101 (NI 51-101) requirements, please refer to the company’s filing of its NI 51-101 data on the System for

Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

(c) Prior to 2009, synthetic oil and mined bitumen reserves were reported separately as mining reserves in the company’s Form 10-K.
(d) Liquids include crude, condensate and natural gas liquids (NGLs).
(e) Gas converted to oil equivalent at 6 million cubic feet per one thousand barrels.
(f) Reserves were calculated based upon SEC’s pricing requirement.

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2012 SUMMARY ANNUAL REPORT

Strategies

• Consistently deliver best-in-class performance

• Provide valued and high-quality products and

services to our customers

• Lead industry in efficiency and effectiveness

• Make disciplined and selective investments

for advantaged returns

The new Strathcona cat cracker regenerator cyclone
assembly being lifted during the 2012 turnaround.

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03-04-13 8:41 AM

2012 SUMMARY ANNUAL REPORTDownstream

Our consistent business strategies achieve
a sustained competitive advantage

Imperial is the largest petroleum
refiner in Canada with a significant
share in all major petroleum
product market sectors, including
retail sales and finished lubricants.

Imperial’s refinery system has
competitive conversion capacity.
This enables Imperial to take
advantage of lower-valued
crudes, increasing profitability.

Results and highlights

Downstream earnings in 2012
were a record $1,772 million,
up from $884 million in 2011,
due to our ability to capture
strong mid-continent margins.

Return on capital employed was
63 percent, and cash flow from
operating activities and asset sales
of $2,040 million was generated.

Total refinery throughput of
435,000 barrels per day was up
from 2011, reflecting good product
demand in Western and Central
Canada, with continued weaker
demand in Eastern Canada.
Average refinery utilization
was 86 percent.

At a glance

Net income (millions of dollars)
Cash flow from operating activities
and asset sales (millions of dollars)

Refinery throughput (thousands of barrels a day)
Refinery utilization (percent)
Net petroleum product sales (thousands of barrels a day)*
Average capital employed (millions of dollars)
Return on average capital employed (percent)
Capital expenditures (millions of dollars)

Record earnings in the
Downstream highlight the value
of Imperial’s integrated business
model. Crude oil realizations in
Western Canada were lower than
in international markets because
of limitations in North American
pipeline capacity. This enabled
Imperial’s refineries in Western
and Central Canada to purchase
lower-cost feedstock, which

combined with strong operational
performance, resulted in strong
margins for refined products.
These high-value products were
efficiently marketed to customers
through Imperial’s extensive
terminals and marketing networks.
During the year, the company also
successfully completed its largest-
ever maintenance program at the
Strathcona refinery.

A N N UA L T H R OU G H P U T –
C OM PA N Y- OW N E D O R L E A SE D
R E TA I L SE RV IC E STAT IO N S
millions of litres per site

R E F I N E RY S O 2 A N D
N O X E M I S SIO N S
thousand tonnes

More than $150 million has been spent in
the last five years to reduce air emissions.

SO2
NOx

2012

2011

2010

2009

2008

1 772

2 040
435
86
445
2 809
63.1
140

884

442

278

796

1 378
430
85
447
3 041
29.1
166

896
444
88
442
3 361
13.2
184

700
413
82
409
3 598
7.7
251

539
446
89
438
3 460
23.0
232

* Net petroleum product sales do not include sales under purchases/sales contracts with the same counterparty.

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03-04-13 8:41 AM

2012 SUMMARY ANNUAL REPORT
Imperial is one of the largest branded
retail marketers in Canada.

In anticipation of Kearl start-up,
Downstream scientists and
engineers worked to prepare
Imperial refineries for Kearl
processing with lab, pilot plant and
commercial scale test runs. Kearl
will produce more bitumen than
is required by Imperial’s refineries,
so these results will also support
third-party marketing of Kearl
volumes.

Markets for refined products in
Canada are mature, and significant
growth is not expected. Strong
mid-continent margins are also
not expected to persist long-term.
In this environment, our strategy
focuses on self-help initiatives
that include targeting best-in-class
performance; providing quality,
valued products and services;
ensuring safe, environmentally
responsible operations; and
exercising cost discipline.

Imperial marketed over
445,000 barrels per day of
refined petroleum products in
2012, representing more than
600 different products. The
majority are sold under the Esso
brand, with the exception of

lubricant products that are sold
under the Mobil brand. These
products are marketed through
the company’s nationwide service
station network as well as through
wholesale channels in Canada
and as exports.

Imperial is one of the largest
branded retail marketers in
Canada. For several years, Imperial
has been upgrading its retail
network in major urban markets.
This strategy provides customers
with premium fuelling and car
wash facilities, augmented by our
On the Run brand convenience
stores and supported by important
brand partnerships, such as Tim
Hortons and RBC Royal Bank.
In 2012, Imperial enhanced the
Aeroplan component of the retail
loyalty program that rewards
customers with a choice of Esso
Extra points or Aeroplan miles.
Imperial markets through 470
company-owned retail sites with

an average annual productivity of
7.3 million litres and an additional
1,300 sites owned and managed
by branded wholesalers and their
dealers.

In June, Imperial introduced
a smartphone application that
provides drivers with real-time
maps, driving directions and
information for all Esso-branded
retail stations.

In 2012, Imperial continued a
program to directly serve only its
largest industrial and wholesale
customers. It is replacing company-
owned secondary distribution sites
serving smaller customers with
branded distributors. To date, about
85 percent of this business has
been converted with the program
expected to be completed in 2013.

In 2012, Imperial furthered its
transition to larger lubricant
distributors with greater
capabilities. As of year-end,
70 percent of its Mobil-branded
lubricants were being supplied
through this network.

Capital investments in the
Downstream totalled $140 million
in 2012 and were focused on
meeting regulatory requirements,
improving reliability, increasing
energy efficiency, feedstock
flexibility and upgrading the
retail network. Planned capital
expenditures in 2013 will be about
$200 million, focused on the same
fundamental business drivers.

Trademarks:
1 On the Run is a trademark of Exxon Mobil

Corporation. Imperial Oil licensee.
2 Aeroplan is a registered trademark

of Aeroplan Canada Inc.

3 RBC and Royal Bank are registered
trademarks of Royal Bank of Canada.
4 Tim Hortons is a registered trademark

of the TDL Marks Corporation.

On the Run convenience store and Tim Hortons featured at an Esso service station
in Toronto.

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03-04-13 8:41 AM

2012 SUMMARY ANNUAL REPORTChemical

Integration with the Downstream enables the
Chemical business to be a cost and productivity leader

Progress continued on the
infrastructure required to secure
a long-term supply of ethane from
the nearby Marcellus shale gas
development. First deliveries of
this cost-advantaged feedstock
to the Sarnia chemical plant are
expected around mid-year 2013.

Imperial is assessing an investment
in the ethylene cracking unit at
Sarnia to improve furnace yield
and efficiency and strengthen
our position to serve the industry
demand.

Responsible Care®

Since its inception, Imperial has
supported Responsible Care®,
an ethic that requires companies
to follow principles that govern
the safe and environmentally
responsible handling of
chemicals throughout their
life cycle.

Strategies

• Focus on businesses that capitalize on core competencies

• Capture benefits of integration with ExxonMobil operations

• Consistently deliver best-in-class performance

Disciplined execution of our
long-term business strategies has
translated into strong performance
across the business cycle.

Imperial is one of Canada’s leading
producers of chemical products
with the largest market share in
North America for polyethylene
used in rotational moulding and
the second-largest market share
in injection moulding.

Results and highlights

Chemical earnings in 2012 were
a record $165 million, up from
$122 million in 2011, as a result
of continuing margin strength
and improved polyethylene
volumes. Return on average
capital employed was 63 percent,
and cash flow from operating
activities and asset sales totalled
$127 million.

The Chemical business is cyclical.
Margins were up in 2012, reflecting
improving North American
economic conditions and lower
feedstock costs.

Total sales of petrochemical
products were 1,044 thousand
tonnes, compared with
1,016 thousand tonnes in 2011.

Record Chemical
earnings of
$165 million were
achieved in 2012.

Imperial’s Chemical facilities are
integrated with refining, which
reduces costs, maximizes value,
and enables the business to be
a leader in cost and productivity.

At a glance

Net income (millions of dollars)
Cash flow from operating activities
and asset sales (millions of dollars)

Chemical sales volumes (thousands of tonnes)
Average capital employed (millions of dollars)
Return on average capital employed (percent)
Capital expenditures (millions of dollars)

2012

165

127
1 044
262
63.0
4

2011

2010

2009

2008

122

100

53
1 016
207
58.9
4

65
989
165
41.8
10

67
1 026
169
27.2
15

183
1 021
199
50.4
13

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03-04-13 8:41 AM

2012 SUMMARY ANNUAL REPORT
Kearl’s paraffinic froth treatment process being
prepared for operations.

IMP_ENG_Book.indd 14

03-04-13 8:41 AM

2012 SUMMARY ANNUAL REPORTKearl feature

Kearl: Overcoming challenges with next
generation thinking

Kearl, 70 kilometres north of Fort McMurray
and jointly owned by Imperial (71 percent)
and ExxonMobil Canada (29 percent), is
one of Canada’s highest-quality oil sands
deposits. It has an estimated 4.6 billion
barrels of recoverable bitumen resource,
which will help meet North America’s
energy needs for the next 40 years.

“Every step along the way we
needed to consider, how are
we going to do things better at
Kearl,” says Chris Allard, Kearl
oil sands project executive. “We
are really proud of what we have
accomplished.”

In the following pages, four
employees outline what sets
this project apart from other oil
sands operators and how some
of the greatest challenges were
overcome prior to start-up.

Answering the call for better
environmental performance while
meeting immense challenges of
developing a megaproject in a
remote location, Kearl’s start-up
will make Imperial history.

Kearl is the largest project Imperial
has undertaken in its 132-year
life. Its size, capital and labour
intensity, public scrutiny and
remote location have proven
to be worthy challenges.

The Kearl project team had an
enormous task to complete in
readying the operation. To name a
few items on their to-do list: hiring,
training and ensuring the safety of
a construction workforce of 5,000;
supporting the development and
competitiveness of local Aboriginal
businesses; putting into practice
technologies and innovations to
reduce tailings production and
accelerate reclamation; reducing
greenhouse gas emissions; and
using less water and energy.
(See the graphic on the inside
fold-out page, which illustrates
how Imperial will improve the
environmental performance
of its operation through next
generation thinking).

Kearl’s heavy equipment uses Mobil synthetic lubricant.

The start-up of Kearl heralds
a major growth phase. In an
Imperial context, it compares
to some major historical events
that made this company what
it is today, like Leduc No. 1 or
the development of our in situ
operations at Cold Lake.

Chris Allard
Kearl oil sands project executive

Q: What sets Kearl apart from other oil sands operations?
A: The start-up of Kearl heralds a major growth phase. In an Imperial context, it compares to some

major historical events that made this company what it is today, like Leduc No. 1 or the development
of our in situ operations at Cold Lake.

Two things set us apart from other oil sands operators. First, we have taken a phased approach
to construction, which is a tried and proven model that has worked for ExxonMobil globally.
It keeps the initial phase manageable in size and complexity, and the learnings can be applied
while we continue the investment.

Second, Kearl was designed with next generation technologies, building on decades of
environmental advances. In 2016, after the start-up of the expansion project, we will be using
a tailings thickener technology to avoid the accumulation of the mature fine tailings. At that
time, we will be able to reclaim land at the tailings site by alternating layers of sand and thickened
tailings returning the site to productive use sooner. Of course, what significantly distinguishes our
project from those of our peers is our proprietary technology, paraffinic froth treatment. It removes
bottom-of-the-barrel bitumen, impurities and solids in order to produce a product that does not
require an upgrader and is compatible with other crudes that travel by pipeline. As a result of
this technology, our life-cycle greenhouse gas footprint is reduced to a level about equal to other
crudes refined in North America.

Q: What were the main construction challenges?
A: I would say there were three challenge areas that we overcame. The first was a result of

unanticipated U.S. permit delays in moving construction components to site. We were able
to safely and effectively implement construction re-sequencing in the order in which the plant
components were designed. The second had to do with the scale and complexity of the task.
We not only physically readied the site but also assembled and incorporated the people –
our large operating organization – over the last couple of years. Finally, we faced challenges
of location. We are remote from suppliers, which brings logistical challenges, and working
through winter conditions proved to be extreme at times.

At first, it was overwhelming
for some of the engineering,
procurement and construction
contract companies to meet
our expectations. Now that
they have seen the value in
supporting local Aboriginal
suppliers, it has led to some
great success stories.

Susan Scott
Aboriginal supplier development advisor with Kearl

Q: How do you help ensure that Aboriginal businesses

have an opportunity to participate in Kearl?

A: My job for Kearl is about raising awareness of what local Aboriginal businesses offer and building

capacity within our contractors to maximize opportunities for Aboriginal businesses. People often
misunderstand my role. They think I am dictating who gets work, when, in fact, I facilitate opportunities.

In the very early stages, we looked at what opportunities were there and mapped out how Aboriginal
businesses could get involved competitively. We put in place a contract process to maximize local
opportunities and worked with our contractors to implement those processes. I’m often asked
by contractors new to Kearl what our required percentage of local content is. We don’t have a set
number. For capacity building to be a success, we have to leave room for creativity and growth.
By the end of 2012, Kearl had spent more than $1 billion with local businesses and $220 million
of that was spent with local Aboriginal businesses.

Our process and requirements are rigorous and regular training and support is key. Contract
companies need to have a dedicated socio-economic coordinator. At first, it was overwhelming
for some of the engineering, procurement and construction contract companies to meet our
expectations. Now that they have seen the value in supporting local Aboriginal suppliers,
it has led to some great success stories.

The basic contract procedure is to look locally, publicly post opportunities, and offer a competitive
bid process. This expectation has created a more competitive environment for everyone involved.

It was also important to communicate to local businesses that they might not be working directly
for Imperial but would still be working for Kearl. Now that we have established relationships,
those relationships can grow in the next expansion phase. I think we have created something
sustainable here. It’s been really positive.

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2 0 1 2 SUM M A RY A N N UA L R E P O RT

03-01-13 2:58 PM

We have been able to find
the skilled people we need to
run the operation from right
here in Canada. We have hired
the breadth – from oil sands,
hard rock and coal miners to
mine managers with extensive
backgrounds. We have been
able to attract the very best.

Gary Silgard
Kearl operations manager

Q: What challenges did you face in training the Kearl
workforce and transitioning the project from
construction to operations?

A: Bringing this all together has been a collective, collaborative effort. It would not be doable

without my team. In a short time, we have assembled a workforce with a wide range of
backgrounds and we worked to provide the structure so that they can work well together.
It is a momentous accomplishment.

We have been really fortunate to have such an engaged staff. That has really helped to ingrain our
workforce in Kearl’s culture, a culture grounded in safety, where people are eager to get to work
and get the plant operational. Our excellent safety record is a testament to that commitment.

Starting up an oil sands project isn’t like flipping a switch. The start-up process carries over a
long period of time. In July of 2011, the completion of the river water intake system marked the
first component at Kearl to be handed over from the project’s construction team to operations.
Throughout last year, we conducted formal handovers as systems became ready. In fact, Kearl
has been actively mining since last April.

Today, Kearl is a stable and sustainable business operation. We have relied on ExxonMobil
systems for expertise and resources for start-up but we have also been able to find the skilled
people we need to run the operation from right here in Canada. We have hired the breadth –
from oil sands, hard rock and coal miners to mine managers with extensive backgrounds.
We have been able to attract the very best.

We also place a lot of emphasis on training. One program I am particularly proud of is a
partnership we have with Women Building Futures. Imperial contributed $400,000 in support of
training women to be heavy equipment operators. The first 12-week program began in February.

I think people are surprised to learn that about 97 percent of the suppliers, contractors and skilled
personnel we have used in the initial development will go on to help with the expansion project.
The value for the project is that they now have the experience, so that in the expansion phase,
they won’t face the same learning curve.

2 0 1 2 SUM M A RY A N N UA L R E P O RT

ENG_foldout.indd 1

Next Gen Oil Sands

The Kearl operation represents the next generation
of oil sands mining. Innovations and technologies
make Kearl’s environmental footprint materially
smaller in comparison to competitors’ facilities.

Water storage

By using an on-site water
storage system, Kearl will be the
first oil sands mine designed to
completely stop drawing water
from the Athabasca River during
low winter flow periods and still
maintain production.

Top soil preservation
and seed collection

Kearl is collecting seeds as
well as removing and storing
materials for future reclamation.
Reclamation work includes
native plants, selected in
consultation with a local First
Nations advisory group.

Ground-breaking technology*

Cogeneration*

Bitumen at Kearl is processed using a proprietary paraffinic
froth treatment to create a product suitable for pipeline
transport to market. As a result, Kearl will be the first oil
sands mining operation that will not require an upgrader to
make a saleable crude oil, meaning a significant reduction
in energy use and greenhouse gas emissions per barrel.

The operation plans to use energy-saving cogeneration to
further reduce its greenhouse gas emissions. Cogeneration
is an efficient method of capturing waste heat to produce
steam and electricity at the same time.

Progressive reclamation

Rather than waiting until the end of
mining operations, Kearl will reclaim
land as it goes.

Surface Soil
Overburden
Tailings
Shale and Limestone
mine direction

Surface Soil

Overburden
Ore

Tailings

By intercepting and treating tailings before they reach the tailings pond, the surface area of Kearl’s tailings pond will be significantly smaller.
Technology helps the operation return the thickened material to mined-out areas, allowing the tailings pond to be reclaimed much earlier.

* Petroleum products derived from bitumen from a project designed like Kearl – using a combination of paraffinic froth treatment and
on-site cogeneration – will have about the same life-cycle greenhouse gas emissions as many crude oils refined in the United States.

03-01-13 2:58 PM

There is both a greenhouse
gas emission and capital
benefit to paraffinic froth
treatment – that’s the very
best of technology, when we
get both an environmental
and economic win.

Cindy Christopher
Manager of environmental policy and planning

Q: What are the top three environmental
improvements we will see at Kearl?

A: Our primary innovation at Kearl is the enhancement of paraffinic froth treatment, an improvement to

an existing technology that our researchers developed. It preferentially separates out asphaltenes –
which are carbon-intensive and carry the very fine solids remaining from the bitumen extraction
process. These asphaltenes are returned back into the mine without further processing. It also means
that the bitumen can be diluted and marketed as produced, without needing an upgrader nearby.
Upgrading requires a significant amount of energy as well as a lot of expensive equipment, so
there is both a greenhouse gas emission and capital benefit of this innovation – that’s the very
best of technology, when we get both an environmental and an economic win. There is also
another benefit. We expect we will have lower solvent emissions because of the type of solvent
we’re using and our ability to recover and recycle it. These are significant benefits and I believe
other operators are also looking at this technology for their future developments.

Another innovation is our ability to store water on-site and, if needed, stop drawing water from
the Athabasca River to protect the aquatic ecosystem. Let me explain why this is important.
The Athabasca River, which flows north, does not have the same demand stresses for water as
some other rivers in Alberta – there are no large agricultural or city demands. However, it also
has no hydroelectric power dams or other controls to regulate its flow. In the summer months,
with ice and snow melting, the flows can be around 10 times as high as in the winter. So, we can
collect and store water in the high flow seasons, which allows us to draw less water during the
winter low flow times. We designed Kearl so that we could rely on our stored water to keep our
operations running at full rate, while protecting the ecosystem. We are the first oil sands operation
designed to do that.

Finally, in later development phases, we plan to use cogeneration, the generation of electricity
and steam in the same process. Using the heat that would otherwise be wasted is incredibly
efficient. It reduces the amount of electricity Kearl will need to draw from the provincial grid to
run its operations, and by decreasing our need to use Alberta’s coal-fired electricity, Kearl’s overall
greenhouse gas emissions are lowered.

IMP_ENG_Book.indd 19

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORT

Justin Loman conducts research to find methods
that can be employed to settle tailings faster.

IMP_ENG_Book.indd 20

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORTSolvent technologies feature

The road to commercial production

The road to commercial production is long
but given the rigour behind the research,
the promise these technologies hold to
improve environmental and economic
performance is certain.

“Before we spend $100 million
on CSP or even $50 million on
SA-SAGD to assess them in the
field, we need to run a lot of tests
in the lab,” says John Elliott,
Imperial’s manager of oil sands
recovery research. “Field piloting
is a big step. It takes a lot of time,
and a lot of money. With any project
we undertake, we need to be sure
it is worth the investment.”

Elliott works at Imperial’s
Upstream research laboratory,
which is widely recognized as
one of the best facilities of its
kind in the world for oil sands
research. Every new technology

that is developed at this centre
in Calgary moves through the
company’s systematic five-step
research process. These research
stages are proof of concept, refine
the concept/technology, field
pilot, commercial decision and
refinement.

Each step along the way can take
years to complete. In order to
progress, the technology has had
to receive a high grade at each
stage. In the case of CSP, it took
20 years to get to a field pilot, or
Stage 3, and SA-SAGD required
about half that time.

Imperial has been researching and
testing the use of solvents in oil
sands operations for decades and
now some of those technologies
have reached pilot testing in the
field. The road to commercial
production is long, but given the
rigour behind the research, the
promise these technologies hold
to improve environmental and
economic performance is certain.

After years of extensive research,
two technologies that could
significantly improve recovery
as well as reduce the energy
and water required to produce
oil from oil sands deposits must
first complete multi-million dollar
dress rehearsals to prove their
commercial viability. One is called
cyclic solvent process, or CSP,
and the other is solvent-assisted
steam-assisted gravity drainage
or SA-SAGD. The CSP field
pilot facility is currently under
construction, with solvent injection
expected to start by year-end;
the SA-SAGD field pilot began
production in late 2010.

COSIA

In 2012, Imperial joined 13 other
companies to form an industry
consortium called Canada’s
Oil Sands Innovation Alliance
(COSIA), with the objective of
accelerating the environmental
performance of oil sands
development.

John Elliott, manager of oil sands recovery research at Imperial.

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03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORTpotential in perspective, one billion
barrels of bitumen are roughly
equal to the total amount of oil
that has been produced at Cold
Lake since commercial production
began more than 25 years ago.

These technologies began with a
good idea. The “proof of concept”
stage starts at a small scale in
order to determine whether the
project might work. The project
at this stage is refined until it is
ready to be tested as a physical
model. As part of this refinement,
the research centre employs
ExxonMobil’s proprietary software,
EMpower, to create mathematical
reservoir simulations based on
physics that test the design,
to better understand what will
happen in the reservoir.

“Imperial tends to spend more
time in Stages 1 and 2 than our
peers,” says Elliott. “We also
tend not to talk publicly about
our technology development
until we have thought about all
the permutations. It is not a failure
if you know why the process
didn’t work. A successful pilot
is when you understand what
happened and why, and you
know how to retool.”

Giovanna Stea in the non-aqueous extraction lab testing a method to produce dry tailings.

in deposits that don’t lend
themselves to traditional
steam methods.”

At its Cold Lake leases alone, the
company estimates that there are
about one billion barrels of bitumen
in deposits that are not thick
enough or not saturated enough
with bitumen to be produced
economically using the existing
steam stimulation method. Solvent
technologies could bring these
marginal resources within reach of
commercial production. To put that

Stage 1 – Proof of concept

In Stage 1, Imperial’s researchers
first determine whether the project
is a fit for the business. “We
don’t do research for the sake of
research,” says Elliott. “We need
to know up front, is this what we
will need in 20 years?”

Both technologies received the
thumbs-up not only because they
promise to improve bitumen
uptake but because they also hold
significant environmental benefits.
SA-SAGD could improve bitumen
recovery in existing SAGD wells
as well as reduce greenhouse
gas emissions. In the case of CSP,
where solvents replace steam
to produce bitumen, the potential
benefits are considered game
changing.

“CSP eliminates the need for large
amounts of energy and water, and
almost eliminates greenhouse gas
emissions,” says Elliott. “It also
allows us to recover bitumen

Non-aqueous extraction

Non-aqueous extraction, considered a step-change technology, is a recovery
process developed by Imperial and ExxonMobil that can be used in future oil
sands mining operations. The patent-pending technology is in development
at the early days of Stage 2. It promises to reduce overall water use in the
extraction process by more than 90 percent. With NAE, dry stackable tailings
will be produced, resulting in faster reclamation and the elimination of wet
tailings ponds.

IMP_ENG_Book.indd 22

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORTStage 2 –
Refining the concept

Stage 2, the “refine the concept”
stage, is when the company can
identify whether the technology
is robust enough for a field pilot.
Throughout this stage, researchers
look to better understand fluid
behaviour at various reservoir
conditions, assess the strengths
and weaknesses of the process
(by completing a reservoir
simulation), as well as refine and
enhance the operation strategy.
A model is then developed
for testing in Imperial’s large
pressure vessel, or Physical Model
Experiment Unit, which simulates
field conditions at 1/100th of the
size of an actual reservoir.

Tiny glass beads that act as the
sand found at the site are used
to fill the vessel. Glass beads
are used because they provide
better control for permeability

and porosity and, as a result,
are the best material to produce
repeatable results. The beads
are flooded with water and
then meticulously treated with
the exact amount of produced
bitumen from the operation area
to replicate field conditions. The
box within the pressure vessel
also simulates temperature and
pressure of the reservoir.

“Other companies use models
too,” explains Elliott, “but they
typically tend to be small. Ours
is huge by comparison and for
good reason. It is scaled to match
the field. Starting with a large-
scale model gives more accurate
results when you scale up.
There are still some differences
in terms of permeability in the
model compared to the site, but
mathematically, we have figured
it out and directionally we know
we are correct at this stage.”

Stage 3 – Field pilot

At Stage 3, the field pilot stage,
the company tests whether what
happened in the lab will really
happen in the field. In the instance
of SA-SAGD, the results to date
from the pilot plant have been
impressive. They have shown a
significant increase in bitumen
recovery accompanied by a
much lower use of energy and
greenhouse gas emissions.

Both CSP and SA-SAGD are being
tested in Cold Lake but their
commercial applications are also
intended for other areas of Alberta.
In the case of CSP, its initial
application is intended for an area
of the Cold Lake lease with lower
oil saturation that would not be
commercial using existing thermal
methods. Future applications of
CSP could be in regions of the
Athabasca oil sands near Fort
McMurray. SA-SAGD, on the other

Ernesto Dela Rosa completes SA-SAGD modelling work in the physical model experiment unit at the Calgary Research Centre.

IMP_ENG_Book.indd 23

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORThand, is planned for a new SAGD
operating area in the Athabasca
or Cold Lake regions.

So the pilot results, even in this
stage, require further fine tuning.
The Cold Lake pilot data not only
needs to match the simulation
data from the lab but also has
to be able to forecast how the
technology will work under
different field conditions.

“It really brings us back to why
that Stage 2 is so important,” says
Elliott. “Commercial opportunities
are based on an understanding of
how the process is expected to
work in the field, from extensive
simulation and physical model
testing, so it’s really important that
we get it right at the start.”

Stages 4 and 5 – Commercial
decision and refinement

Stage 3 results determine whether
a technology has commercial
application. Stage 4 is commercial
deployment. This is where the
company uses the technology on
a commercial scale to produce oil
more economically. SA-SAGD is

The patented LASER technology is in commercial use at Imperial’s Cold Lake operation.

about one year away from passing
into Stage 4; CSP is about four
years away.

pioneered and has been using
at Cold Lake for more than
25 years.

Finally, in Stage 5, the company
builds on past success and
looks to refine the technology
further, whether that means
making it work better, improving
bitumen recovery or reducing
environmental impacts. In fact,
the company is still perfecting
the cyclic steam process that it

Through its continuous
improvement and research,
Imperial’s “dress rehearsal”
could show that its new solvent
technologies can bring even fields
once considered marginal resources
to commercial production in a more
environmentally friendly way.

LASER

After more than a decade of research and field trials, the company has begun large-scale bitumen production using
a new technology called LASER (liquid addition to steam to enhance recovery). LASER, patented in 2005 and currently
in use at Cold Lake to improve recovery in late life wells, is in Stage 4 development.

LASER involves injecting a small amount of gas condensate (the same material that is added to bitumen so it can
be shipped by pipeline) along with steam into wells that have already been through several cycles of steam injection.
Adding solvent to the steam increases the amount of oil that can be produced per unit of injected steam, while reducing
greenhouse gas emissions by more than 25 percent.

IMP_ENG_Book.indd 24

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORT
Financial summary

Report of independent registered
public accounting firm

To the Shareholders
of Imperial Oil Limited:

We have audited, in accordance
with the standards of the Public
Company Accounting Oversight Board
(United States), the consolidated
balance sheets of Imperial Oil
Limited as of December 31, 2012
and December 31, 2011, and the
related consolidated statements
of income, comprehensive income,
shareholders’ equity and cash flows
for each of the three years in the
period ended December 31, 2012
(not presented herein) appearing in
Appendix A to the Management Proxy
Circular for the 2013 annual meeting
of shareholders of the Company;
and in our report dated February 26,
2013, we expressed an unqualified
opinion on those consolidated
financial statements.

In our opinion, the information set
forth in the accompanying condensed
consolidated financial statements
(pages 25 to 28) is fairly stated, in
all material respects, in relation to the
consolidated financial statements from
which it has been derived.

PricewaterhouseCoopers LLP
Chartered Accountants
Calgary, Alberta, Canada
February 26, 2013

Summary of accounting policies and practices

The company’s accounting and financial reporting fairly reflect its straightforward
business model involving the extracting, refining and marketing of hydrocarbons
and hydrocarbon-based products. The summary financial statements have been
prepared in accordance with generally accepted accounting principles of the
United States of America (GAAP). GAAP requires management to make estimates
and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses and the disclosure of contingent assets and liabilities. All amounts are
in Canadian dollars unless otherwise indicated.

The summary financial statements include the accounts of Imperial Oil Limited
and its subsidiaries. Intercompany accounts and transactions are eliminated.
Subsidiaries include those companies in which Imperial has both an equity
interest and the continuing ability to unilaterally determine strategic, operating,
investing and financing policies. The consolidated financial statements also include
the company’s share of the undivided interest in certain upstream assets and
liabilities, including its 25 percent interest in the Syncrude joint venture and its
70.96 percent interest in the Kearl project.

Revenues associated with sales of crude oil, natural gas, petroleum and chemical
products are recognized when the products are delivered and title passes to
the customer.

Inventories of crude oil, products and merchandise are carried at the lower of current
market value or cost (generally determined under the last-in, first-out method – LIFO).

The company does not use financing structures for the purpose of altering
accounting outcomes or removing debt from the balance sheet. The company
does not use derivative instruments to speculate on the future direction of
currency or commodity prices.

The company’s exploration and production activities are accounted for under the
“successful efforts” method. Depreciation, depletion and amortization are primarily
determined under either the unit-of-production method or the straight-line method.
Unit-of-production rates are based on the amount of proved developed reserves of
oil and gas that are estimated to be recoverable from existing facilities. The straight-
line method is based on estimated asset service life.

The company incurs retirement obligations for certain assets at the time they
are installed. The fair values of these obligations are recorded as liabilities on a
discounted basis and are accreted over time for the change in their present value.
The costs associated with these liabilities are capitalized as part of the related assets
and depreciated. Liabilities for environmental costs are recorded when it is probable
that obligations have been incurred and the amounts can be reasonably estimated.

The company recognizes the underfunded or overfunded status of defined benefit
pension and other post-retirement plans as a liability or asset in the balance sheet
with the offset in shareholders’ equity, net of deferred taxes.

A variety of claims have been made against Imperial Oil and certain of its consolidated
subsidiaries in a number of pending lawsuits and tax disputes. For further information
on tax contingencies and litigation, see Notes 3 and 9 to the Consolidated Financial
Statements in Appendix A of Imperial Oil’s 2013 Management Proxy Circular.

The company awards share-based compensation to employees in the form of
restricted stock units. Compensation expense is measured each reporting period
based on the company’s current stock price and is recorded in the consolidated
statement of income over the requisite service period of each award.

Further information on the company’s accounting policies and practices can be
found in Appendix A of Imperial Oil’s 2013 Management Proxy Circular (Critical
accounting estimates and note 1 to the consolidated financial statements).

IMP_ENG_Book.indd 25

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORTSummary statement of income (U.S. GAAP)
millions of Canadian dollars

For the years ended December 31

2012

2011

2010

Revenues and other income
Operating revenues (a)(b)
Investment and other income
Total revenues and other income

Expenses
Exploration
Purchases of crude oil and products (c)
Production and manufacturing (d)
Selling and general
Federal excise tax (a)
Depreciation and depletion
Financing costs
Total expenses

Income before income taxes

Income taxes

Net income

Per-share information (Canadian dollars)
Net income per common share – basic
Net income per common share – diluted
Dividends

31 053
135
31 188

83
18 476
4 457
1 081
1 338
761
(1)
26 195

4 993

1 227

3 766

4.44
4.42
0.48

30 474
240
30 714

92
18 847
4 114
1 168
1 320
764
3
26 308

4 406

1 035

3 371

3.98
3.95
0.44

24 946
146
25 092

191
14 811
3 996
1 070
1 316
747
7
22 138

2 954

744

2 210

2.61
2.59
0.43

(a) Operating revenues include federal excise tax of $1 338 million (2011 – $1 320 million, 2010 – $1 316 million).
(b) Operating revenues include amounts from related parties of $2 907 million (2011 – $2 818 million, 2010 – $2 250 million).
(c) Purchases of crude oil and products include amounts from related parties of $3 033 million (2011 – $3 636 million, 2010 – $2 828 million).
(d) Production and manufacturing expenses include amounts to related parties of $241 million (2011 – $217 million, 2010 – $233 million).

The information in the Summary Statement of Income (for 2010 to 2012), the Summary Balance Sheet (for 2011 and 2012), and
the Summary Statement of Cash Flows (for 2010 to 2012), shown on pages 26 through 28, corresponds to the information in the
Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in the consolidated
financial statements of Imperial Oil’s 2013 Management Proxy Circular. For complete consolidated financial statements, including
notes, please refer to Appendix A of Imperial Oil’s 2013 Management Proxy Circular. See also Management’s Discussion and Analysis
of Financial Condition and Results of Operations and other information in Appendix A of the 2013 Management Proxy Circular.

IMP_ENG_Book.indd 26

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORTSummary balance sheet (U.S. GAAP)
millions of Canadian dollars

At December 31

2012

2011

Assets
Current assets
Cash
Accounts receivable, less estimated doubtful amounts

Inventories of crude oil and products
Materials, supplies and prepaid expenses
Deferred income tax assets

Total current assets
Long-term receivables, investments and other long-term assets
Property, plant and equipment, less accumulated depreciation and depletion
Goodwill
Other intangible assets, net
Total assets

Liabilities
Current liabilities
Notes and loans payable
Accounts payable and accrued liabilities (a)

Income taxes payable

Total current liabilities
Long-term debt (b)
Other long-term obligations
Deferred income tax liabilities
Total liabilities

Commitments and contingent liabilities

Shareholders’ equity
Common shares at stated value (c)
Earnings reinvested
Accumulated other comprehensive income
Total shareholders’ equity

Total liabilities and shareholders’ equity

482
1 976
827
280
527
4 092
1 090
23 922
204
56
29 364

472
4 249
1 184
5 905
1 175
3 983
1 924
12 987

1 566
17 266
(2 455)
16 377

29 364

1 202
2 290
762
239
590

5 083
920
19 162
204
60
25 429

364
4 317
1 268

5 949
843
3 876
1 440
12 108

1 528
14 031
(2 238)
13 321

25 429

(a) Accounts payable and accrued liabilities include amounts receivable from related parties of $9 million (2011 – amounts payable of $215 million).
(b) Long-term debt includes amounts to related parties of $1 040 million (2011 – $820 million).
(c) Number of common shares outstanding was 848 million (2011 – 848 million).

IMP_ENG_Book.indd 27

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORT

Summary statement of cash flows (U.S. GAAP)
millions of Canadian dollars

inflow (outflow)

For the years ended December 31

Operating activities
Net income
Adjustments for non-cash items:
Depreciation and depletion
(Gain)/loss on asset sales

Deferred income taxes and other
Changes in operating assets and liabilities:
Accounts receivable

Inventories, materials, supplies and prepaid expenses
Income taxes payable

Accounts payable and accrued liabilities
All other items – net (a)
Cash flows from operating activities

Investing activities
Additions to property, plant and equipment
Proceeds from asset sales
Repayment of loan from equity company
Cash flows from (used in) investing activities

Financing activities
Short-term debt – net
Long-term debt issued
Reduction in capitalized lease obligations
Issuance of common shares under stock option plan
Common shares purchased
Dividends paid
Cash flows from (used in) financing activities

Increase (decrease) in cash
Cash at beginning of year
Cash at end of year (b)

2012

2011

2010

3 766

3 371

2 210

761
(94)
619

300
(106)
(84)
(67)
(415)
4 680

(5 478)
226
14
(5 238)

105
220
(4)
43
(128)
(398)
(162)

(720)
1 202
482

764
(197)
71

(302)
(228)
390
846
(226)
4 489

(3 919)
314
12
(3 593)

135
320
(3)
19
(59)
(373)
39

935
267
1 202

747
(95)
152

(289)
38
30
651
(237)
3 207

(3 856)
144
3
(3 709)

120
500
(3)
3
(8)
(356)
256

(246)
513
267

(a) Includes contribution to registered pension plans of $594 million (2011 – $361 million, 2010 – $421 million).
(b) Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.

IMP_ENG_Book.indd 28

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORT

Share ownership, trading and performance

Share ownership
Average number outstanding, weighted monthly (thousands)
Number of shares outstanding at December 31 (thousands)
Shares held in Canada at December 31 (percent)
Number of registered shareholders at December 31 (a)
Number of shareholders registered in Canada

Shares traded (thousands)

Share prices (dollars) (b)
Toronto Stock Exchange
High
Low
Close at December 31

NYSE MKT (U.S. dollars)
High
Low
Close at December 31

Net income per share (dollars)
– basic
– diluted

Price ratios at December 31
Share price to net earnings (c)

Dividends declared (d)
Total (millions of dollars)
Per share (dollars)

2012

2011

2010

2009

2008

847 735
847 599
10.7
12 485
11 107

847 659
847 599
10.8
12 736
11 304

847 609
847 599
10.8
12 909
11 430

849 760
847 599
10.8
13 157
11 621

882 604
859 402
11.1
13 206
11 620

227 717

317 857

212 188

318 055

477 574

49.26
39.77
42.73

50.00
38.16
43.00

4.44
4.42

54.00
34.15
45.39

55.63
32.18
44.48

43.50
36.95
40.58

43.54
35.18
40.52

49.11
35.95
40.66

43.13
28.44
38.66

62.54
28.79
40.99

63.08
23.84
33.72

3.98
3.95

2.61
2.59

1.86
1.84

4.39
4.36

9.7

11.5

15.7

22.1

9.4

408
0.48

373
0.44

364
0.43

340
0.40

334
0.38

(a) Exxon Mobil Corporation owns 69.6 percent of Imperial’s shares.
(b) Imperial’s shares are listed on the Toronto Stock Exchange. The company’s shares also trade in the United States of America on the NYSE MKT LLC.

Imperial has unlisted privileges on the NYSE MKT LLC, a subsidiary of NYSE Euronext. The symbol on these exchanges for Imperial’s common shares
is IMO. Share prices were obtained from stock exchange records. U.S. dollar share price presented is based on consolidated U.S. market data.

(c) Closing share price at December 31 at the Toronto Stock Exchange, divided by net income per share – diluted.
(d) The fourth quarter dividend is paid on January 1 of the succeeding year.

Workforce

2012

2011

2010

2009

2008

5 263

5 083

5 148

5 125

4 938

Career employees are defined as executive, management, professional, technical, wage and administrative employees who work
full-time or part-time for the corporation and are covered by the corporation’s benefit plans and programs.

IMP_ENG_Book.indd 29

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORT

Frequently used terms

Listed below are definitions of several of Imperial’s key business and financial performance measures.
The definitions are provided to facilitate understanding of the terms and how they are calculated.

Capital employed

Capital employed is a measure of net investment. When viewed from the perspective of how capital is used
by the business, it includes the company’s property, plant and equipment and other assets, less liabilities,
excluding both short-term and long-term debt. When viewed from the perspective of the sources of capital
employed in total for the company, it includes total debt and equity. Both of these views include the company’s
share of amounts applicable to equity companies, which the company believes should be included to provide
a more comprehensive measurement of capital employed.

millions of dollars

2012

2011

2010

2009

2008

Business uses: asset and liability perspective
Total assets
Less: total current liabilities excluding notes

and loans payable
total long-term liabilities excluding long-term debt

Add: Imperial’s share of equity company debt

Total capital employed

Total company sources: debt and equity perspective
Notes and loans payable
Long-term debt
Shareholders’ equity
Add: Imperial’s share of equity company debt

Total capital employed

29 364

25 429

20 580

17 473

17 035

(5 433)
(5 907)
24
18 048

(5 585)
(5 316)
28

(4 348)
(4 299)
33

14 556

11 966

(3 659)
(4 235)
36

9 615

(4 084)
(3 743)
40

9 248

472
1 175
16 377
24
18 048

364
843
13 321
28

14 556

229
527
11 177
33

11 966

109
31
9 439
36

9 615

109
34
9 065
40

9 248

Return on average capital employed (ROCE)

ROCE is a financial performance ratio. From the perspective of the business segments, ROCE is annual
business-segment net income divided by average business-segment capital employed (an average of the
beginning- and end-of-year amounts). Segment net income includes Imperial’s share of segment net income
of equity companies, consistent with the definition used for capital employed, and excludes the cost of
financing. The company’s total ROCE is net income excluding the after-tax cost of financing divided by total
average capital employed. The company has consistently applied its ROCE definition for many years and views
it as the best measure of historical capital productivity in a capital-intensive, long-term industry to both evaluate
management’s performance and demonstrate to shareholders that capital has been used wisely over the
long term. Additional measures, which are more cash flow based, are used to make investment decisions.

millions of dollars

2012

2011

2010

2009

2008

Net income
Financing costs (after tax), including Imperial’s

share of equity companies

Net income excluding financing costs

Average capital employed

Return on average capital employed (percent)

3 766

3 371

2 210

1 579

3 878

1
3 767
16 302
23.1

3 372

2 212

13 261

10 791

25.4

20.5

1 581

9 432

16.8

3 880

8 684

44.7

IMP_ENG_Book.indd 30

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORT

Cash flow from operating activities and asset sales

Cash flow from operating activities and asset sales is the sum of the net cash provided by operating activities
and proceeds from asset sales reported in the consolidated statement of cash flows. This cash flow reflects the
total sources of cash both from operating the company’s assets and from the divesting of assets. The company
employs a long-standing and regular disciplined review process to ensure that all assets are contributing to the
company’s strategic objectives. Assets are divested when they no longer meet these objectives or are worth
considerably more to others. Because of the regular nature of this activity, the company believes it is useful for
investors to consider sales proceeds together with cash provided by operating activities when evaluating cash
available for investment in the business and financing activities, including shareholder distributions.

millions of dollars

2012

2011

2010

2009

2008

Cash flows from operating activities
Proceeds from asset sales

Total cash flows from operating activities and asset sales

4 680
226
4 906

4 489
314

4 803

3 207
144

3 351

1 591
67

1 658

4 263
272

4 535

Operating costs

Operating costs are the costs during the period to produce, manufacture, and otherwise prepare the company’s
products for sale – including energy costs, staffing, and maintenance costs. They exclude the cost of raw
materials, taxes and interest expense and are on a before-tax basis. While the company is responsible for
all revenue and expense elements of net income, operating costs, as defined below, represent the expenses
most directly under the company’s control and therefore, are useful in evaluating the company’s performance.

Reconciliation of operating costs

millions of dollars

2012

2011

2010

2009

2008

From Imperial’s Consolidated Statement of Income
Total expenses
Less:
Purchases of crude oil and products
Federal excise tax
Financing costs

Subtotal
Imperial’s share of equity company expenses

Total operating costs

Components of operating costs

26 195

26 308

22 138

19 198

26 303

18 476
1 338
(1)
19 813
34
6 416

18 847
1 320
3

20 170
39

6 177

14 811
1 316
7

16 134
39

6 043

11 934
1 268
5

13 207
39

6 030

18 865
1 312
–

20 177
55

6 181

millions of dollars

2012

2011

2010

2009

2008

From Imperial’s Consolidated Statement of Income
Production and manufacturing
Selling and general
Depreciation and depletion
Exploration

Subtotal
Imperial’s share of equity company expenses

Total operating costs

4 457
1 081
761
83
6 382
34
6 416

4 114
1 168
764
92

6 138
39

6 177

3 996
1 070
747
191

6 004
39

6 043

3 951
1 106
781
153

5 991
39

6 030

4 228
1 038
728
132

6 126
55

6 181

IMP_ENG_Book.indd 31

03-04-13 8:42 AM

2012 SUMMARY ANNUAL REPORTInformation for investors

Head office

Imperial Oil Limited
P.O. Box 2480, Station ‘M’
Calgary, Alberta
Canada T2P 3M9

Telephone: 1-800-567-3776
Fax: 1-800-367-0585

Annual meeting

The annual meeting of shareholders will be held on
Thursday, April 25, 2013, at 9:30 a.m. local time at
the Sheraton Suites Eau Claire, Wildrose Ballroom,
255 Barclay Parade S.W., Calgary, Alberta, Canada.

Shareholder account matters

To change your address, transfer shares, eliminate multiple
mailings, elect to receive dividends in U.S. funds, have
dividends deposited directly into accounts at financial
institutions in Canada that provide electronic fund transfer
services, enrol in the dividend reinvestment and share
purchase plan, or enrol for electronic delivery of shareholder
reports, please contact Imperial’s transfer agent, CIBC
Mellon Trust Company.

CIBC Mellon Trust Company*
P.O. Box 700
Postal Station B
Montreal, Quebec H3B 3K3

Telephone: 1-800-387-0825 (from Canada & U.S.A.)
or 416-682-3860
Fax: 1-888-249-6189 or 514-985-8843
Email: inquiries@canstockta.com
Website: www.canstockta.com

United States resident shareholders may transfer
their shares through American Stock Transfer & Trust
Company LLC.

American Stock Transfer
6201 - 15th Avenue
Brooklyn, New York
U.S.A. 11219

Telephone: 1-800-387-0825
Email: inquiries@canstockta.com
Website: www.amstock.com

Dividend reinvestment and share purchase plan

This plan provides shareholders with two ways to add to
their shareholdings at a reduced cost. The plan enables
shareholders to reinvest their cash dividends in additional
shares at an average market price. Shareholders can also
invest between $50 and $5,000 each calendar quarter
in additional shares at an average market price.

Funds directed to the dividend reinvestment and share
purchase plan are used to buy existing shares on a stock
exchange rather than newly issued shares.

Imperial online

Imperial publishes a wide range of information on its
website, including annual and interim reports, SEC filings,
proxy circulars and forms, key dates for investors and
shareholders, as well as other information that should
be helpful to our shareholders in the day-to-day
management of their shares. Should you not be able
to find the information you are looking for, please
contact customer service at 1-800-567-3776.

Website: www.imperialoil.ca

Investor information

Information is also available by writing to the investor
relations manager at Imperial’s head office or by

E-mail: investor.relations@esso.ca
Telephone: 403-237-4538
Fax: 403-237-2075

For all other shareholder services-related
inquiries, please contact:

Brian W. Livingston
Vice-president, general counsel
and corporate secretary
Telephone: 403-237-2915
Fax: 403-237-2490

Version française du rapport

Pour obtenir la version française du rapport de la
Compagnie Pétrolière Impériale Ltée, veuillez écrire
à la division des Relations avec les investisseurs,
Compagnie Pétrolière Impériale Ltée, P.O. Box 2480,
Station ’M’, Calgary, Alberta, Canada T2P 3M9.

Included in this Summary Annual Report are financial and
operating highlights and summary financial statements.
For complete consolidated financial statements, including
notes, please refer to the Management Proxy Circular for
Imperial Oil’s 2013 annual meeting. The Management
Proxy Circular also includes Management’s Discussion
and Analysis of Financial Condition and Results of
Operations. The Investors section of Imperial Oil’s
website (www.imperialoil.ca) contains the Management
Proxy Circular.

* Canadian Stock Transfer Company Inc. acts as the administrative agent

for CIBC Mellon Trust Company.

IMP_ENG_Book.indd 32

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2012 SUMMARY ANNUAL REPORT

Directors and officers

Board of directors

Other officers

Krystyna T. Hoeg
Corporate director
Toronto, Ontario

Bruce H. March
Chairman, president and
chief executive officer
Imperial Oil Limited
Calgary, Alberta

Jack M. Mintz
Palmer Chair in Public Policy
University of Calgary
Calgary, Alberta

Robert C. Olsen
Executive vice-president
ExxonMobil Production Company
Houston, Texas

David S. Sutherland
Corporate director
Waterloo, Ontario

Sheelagh D. Whittaker
Corporate director
London, England

Victor L. Young
Corporate director
St. John’s, Newfoundland
and Labrador

Paul J. Masschelin
Senior vice-president, finance
and administration, and controller

T. Glenn Scott
Senior vice-president,
resources division

Brian W. Livingston
Vice-president, general counsel
and corporate secretary

Audit committee

V.L. Young, chair
S.D. Whittaker, vice-chair
K.T. Hoeg
J.M. Mintz
D.S. Sutherland

Executive resources
committee

K.T. Hoeg, chair
V.L. Young, vice-chair
J.M. Mintz
R.C. Olsen
D.S. Sutherland
S.D. Whittaker

Nominations and corporate
governance committee

S.D. Whittaker, chair
J.M. Mintz, vice-chair
K.T. Hoeg
R.C. Olsen
D.S. Sutherland
V.L. Young

Environment, health
and safety committee

J.M. Mintz, chair
D.S. Sutherland, vice-chair
K.T. Hoeg
R.C. Olsen
S.D. Whittaker
V.L. Young

Contributions committee

D.S. Sutherland, chair
K.T. Hoeg, vice-chair
B.H. March
J.M. Mintz
R.C. Olsen
S.D. Whittaker
V.L. Young

Imperial Oil Limited Board of Directors from left to right: Robert C. Olsen, Sheelagh D. Whittaker, Jack M. Mintz, Bruce H. March,
David S. Sutherland, Krystyna T. Hoeg and Victor L. Young.

IMP_ENG_Book.indd 33

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Imperial Oil Limited
P.O. Box 2480, Station ‘M’
Calgary, Alberta T2P 3M9

www.imperialoil.ca

This report was printed on paper made from
100% chlorine free and acid free pulp that
is Forest Stewardship Council® certified.

IMP_ENG_Book.indd 34

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