Item 2.06 Material Impairments
On November 24, 2020, the board of directors of Imperial Oil Limited (the
"company") completed its annual review and approval of the company's business
and strategic plan. The company has re-assessed the long term development plans
of its unconventional portfolio in Alberta, Canada and no longer plans to
develop a significant portion of this portfolio. The decision not to develop
these assets will result in a non-cash, after-tax charge of approximately
$0.9 billion to $1.2 billion in the company's fourth quarter 2020 results. These
non-core assets are non-producing, undeveloped assets and the company does not
expect any material future cash expenditures related to this impairment. Not
included in this impairment are the high value, liquids-rich portion of the
company's unconventional asset portfolio, which the company still plans to
develop. This decision is consistent with the company's strategy of focusing its
upstream resources and efforts on its key oil sands assets as well as on only
the most attractive portions of its unconventional portfolio, and as such will
not impact previously provided production estimates.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is furnished as part of this Current Report on Form 8-K:
99.1 News release of the company on November 30, 2020 confirming the
decision not to develop a significant portion of its
unconventional portfolio in Alberta, Canada, and an estimate of
the resulting non-cash, after-tax charge associated with this
decision.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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