Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2011

Long-Term Debt [Abstract]

Long-Term Debt

millions of dollars	As at Dec. 31 2011		As at Dec. 31 2010
Long-term debt (a)		820		500
Capital leases (b)		23		27
Total long-term debt		843		527

(a) In 2011, the company borrowed an additional $320 million under an existing agreement with an affiliated company of Exxon Mobil Corporation (ExxonMobil) that provides for a long-term, variable-rate loan from ExxonMobil to the company of up to $5 billion (Canadian) at interest equivalent to Canadian market rates. The agreement is effective until July 31, 2020, cancelable if ExxonMobil provides at least 370 days advance written notice. Average effective rate for the loan was 1.3 percent in 2011.

(b) Capitalized lease obligations primarily relate to the capital lease for marine services, which are provided by the lessor commencing in 2004 for a period of 10 years, extendable for an additional five years. The average imputed rate was 11.4 percent in 2011 (2010 – 11.2 percent). Total capitalized lease obligations also include $4 million in current liabilities (2010 - $4 million). Principal payments on capital leases of approximately $4 million a year are due in each of the remaining three years of the initial term of the arrangement.