PCA_08AR_Jan26 8_1/4x10_3/4:PCA 08AR_Oct8 20/02/09 10:30 AM Page 6 StrengthAnnual Information Form 2008 March 18, 2009 to Deliver Table of Contents Presentation of Information ...........................................................................................................................................1 Conversion Factors .......................................................................................................................................................1 Legal Notice – Forward-Looking Information .......................................................................................................................1 Corporate Structure ...........................................................................................................................................................4 Incorporation of Petro-Canada .............................................................................................................................................4 Intercorporate Relationships .................................................................................................................................................4 Business of Petro-Canada ............................................................................................................................................5 General Development of the Business ..............................................................................................................................6 Three-Year History ................................................................................................................................................................6 Description of the Business ..............................................................................................................................................9 Business Environment ..........................................................................................................................................................9 Risk Management ...............................................................................................................................................................10 Upstream.....................................................................................................................................................................14 North American Natural Gas ......................................................................................................................................14 Oil Sands .....................................................................................................................................................................19 International & Offshore .......................................................................................................................................26 East Coast Canada .....................................................................................................................................................26 International ................................................................................................................................................................30 Upstream Production and Prices ........................................................................................................................................36 Reserves .............................................................................................................................................................................46 Downstream ........................................................................................................................................................................60 Human Resources ..............................................................................................................................................................66 Social and Environmental Policies .....................................................................................................................................66 Environmental Expenditures ...............................................................................................................................................68 Select Financial Data ................................................................................................................................................................69 Capital Expenditures on Property, Plant and Equipment and Exploration ....................................................................71 Dividends .............................................................................................................................................................................72 Capital Structure ..............................................................................................................................................................73 General Description of Capital Structure ............................................................................................................................73 Constraints .................................................................................................................................................................73 Credit Ratings .....................................................................................................................................................................74 Market for Securities ........................................................................................................................................................75 Trading Price and Volume ..................................................................................................................................................75 Prior Sales ...........................................................................................................................................................................75 Directors and Officers ..............................................................................................................................................................76 Directors .....................................................................................................................................................................76 Share Ownership ................................................................................................................................................................85 Audit Committee Disclosure ...............................................................................................................................................85 Interest of Management and Others in Material Transactions .......................................................................................86 Transfer Agents and Registrars ......................................................................................................................................86 Interests of Experts ..........................................................................................................................................................86 Additional Information .....................................................................................................................................................86 Schedule A: Report on Reserves Data by Senior Officer Responsible for Reserves Data ..........................................87 Schedule B: Report of Management and Directors on Reserves Data and Other Information ....................................89 Schedule C: Audit, Finance and Risk Committee ...........................................................................................................91 Cover design: The Design Centre of Canada; Inside: Platinum Creative Solutions Inc. This report was printed on paper that is acid-free and recyclable. Inks are based on linseed oil and contain no heavy metals. The printing process was alcohol-free. Volatile organic compounds associated with printing were reduced by 50% to 75% from the levels that would have been produced using traditional inks and processes. PRESENTATION OF INFORMATION The information contained in this Annual Information Form (AIF) is dated as at December 31, 2008, unless otherwise indicated. Throughout this AIF, the terms "Petro-Canada," the "Company," "we," "us" and "our" refer to Petro-Canada and its subsidiaries or, where the context requires, the applicable businesses within Petro-Canada (e.g. North American Natural Gas, Oil Sands, East Coast Canada, International and Downstream). Dollars are Canadian (Cdn), unless otherwise stated. All oil and natural gas production and reserves volumes are stated before deduction of royalties, unless otherwise indicated. CONVERSION FACTORS To conform with common usage, imperial units of measurement are used in this AIF to describe exploration and production, while metric units are used for refining and marketing. 1 cubic metre – m3 (liquids) = 6.29 barrels (bbls) 1 m3 (natural gas) = 35.30 cubic feet 1 litre = 0.22 imperial gallon 1 square kilometre = 247.10 acres 1 hectare = 2.47 acres 1 m3 = 1,000 litres LEGAL NOTICE – FORWARD-LOOKING INFORMATION This AIF contains forward-looking information. You can usually identify this information by such words as "plan," "anticipate," "forecast," "believe," "target," "intend," "expect," "estimate," "budget " or other terms that suggest future outcomes or references to outlooks.