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                                                                    Exhibit 10.8

                          EXECUTIVE EMPLOYMENT CONTRACT

             THIS AGREEMENT is dated effective as of June 15, 1998.

BETWEEN:

                          GULF CANADA RESOURCES LIMITED
                     (hereinafter called the "Corporation")

                                                               OF THE FIRST PART

                                     - and -



                                 HENRY W. SYKES,
                         OF THE CITY OF CALGARY, CANADA
                      (hereinafter called the "Executive")

                                                              OF THE SECOND PART

WHEREAS

         (a)      The Executive is considered by the Board of Directors of the
                  Corporation to have outstanding and special skills and
                  abilities and an extensive background in and knowledge of the
                  Corporation's business and the industry in which it is engaged
                  and to be well-suited to the position of Senior Vice
                  President, Business Development and General Counsel of the
                  Corporation;

         (b)      The Board of Directors recognizes that it is essential and in
                  the best interests of the Corporation to attract and retain
                  the dedication of the Executive to his office and employment
                  and that the service of the Executive to the Corporation
                  requires that the Executive receive fair treatment,
                  particularly in the event of an actual or constructive
                  termination of his employment with the Corporation;

         NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
mutual covenants herein contained and in consideration of the Executive
remaining in office and in the employment of the Corporation at the present time
and throughout the period of material change of ownership or organization of the
Corporation, it is hereby agreed as follows:


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1.       DEFINITIONS

         In this Agreement:

         (a)      "affiliate" means:

                  (i)      one body corporate is an affiliate of another body
                           corporate if one of them is the subsidiary of the
                           other or both are subsidiaries of the same body
                           corporate or each of them is under the control of the
                           same person; and

                  (ii)     two bodies corporate that are an affiliate of the
                           same body corporate at the same time are affiliates
                           of each other.

         (b)      "associate" has the meaning ascribed to that term in the
                  Canada Business Corporations Act.

         (c)      "change of control" means or shall be deemed to have occurred
                  if and when:

                  (i)      the acquisition, by whatever means (including without
                           limitation, amalgamation, consolidation, liquidation,
                           arrangement or merger), by a person (or two or more
                           persons who in such acquisition have acted jointly or
                           in concert or intend to exercise jointly or in
                           concert any voting rights attaching to the securities
                           acquired), directly or indirectly, of the beneficial
                           ownership of such number of voting securities or
                           rights to voting securities of the Corporation, which
                           together with such person's then owned voting
                           securities and rights to voting securities, if any,
                           represent (assuming the full exercise of such rights
                           to voting securities) more than 20% of the combined
                           voting power of the Corporation's then outstanding
                           voting securities, together with the voting
                           securities acquired and such person's previously
                           owned rights to voting securities; or

                  (ii)     individuals who were members of the Board of
                           Directors of the Corporation immediately prior to a
                           meeting of the shareholders of the Corporation
                           involving a contest for or on an item of business
                           relating to the election of directors shall not
                           constitute a majority of the Board of Directors
                           following such election.

         (d)      "Compensation Committee" means the Committee of the Board of
                  Directors of the Corporation from time to time appointed to
                  fix the remuneration of executives of the Corporation or, if
                  such Committee has not been appointed, means the Board of
                  Directors of the Corporation.

         (e)      "confidential information" means information, processes,
                  know-how, data, trade secrets, techniques, knowledge and other
                  confidential information not generally 


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                  known to the public relating to or connected with the business
                  or corporate affairs and operations of the Corporation and its
                  affiliates.

         (f)      "constructive dismissal" means, unless consented to by the
                  Executive in writing, any action by the Corporation which
                  constitutes constructive dismissal of the Executive,
                  including, without limiting the generality of the foregoing:
   
                  (i)      any material reduction in the Executive's office,
                           titles, positions, duties, responsibilities, powers
                           or reporting relationships;

                  (ii)     any reduction in the annual salary of the Executive;

                  (iii)    a requirement to relocate to another province, state
                           or country; and

                  (iv)     any material reduction in the value of the
                           Executive's employee benefits plans and programmes,
                           including, without limiting the generality of the
                           foregoing, bonus arrangements.

         (g)      "control" has the meaning ascribed to that term in the Canada
                  Business Corporations Act.

         (h)      "executive superannuation undertakings" refers, for purposes
                  of section 2.6(c) of this Agreement, to a commitment given by
                  the Corporation in recognition of the fact that the retirement
                  benefits under the registered pension plans of the Corporation
                  and its affiliates are subject to a maximum pension limitation
                  as fixed from time to time under the Income Tax Act (Canada)
                  and the rules and regulations promulgated by Revenue Canada,
                  Taxation, from time to time thereunder. To the extent that
                  this limitation applies with respect to the registered pension
                  plans of the corporation or its affiliates for service prior
                  to January 1, 1996, the Corporation has undertaken to pay a
                  supplemental retirement allowance sufficient to provide the
                  Executive with an annual pension equal to the annual pension
                  to which the Executive would be entitled under the registered
                  pension plans of the Corporation and its affiliates if such
                  limitation did not apply to such plans. For service from
                  January 1, 1996 onwards, once the Revenue Canada contribution
                  limit has been reached contributions of the same amount as
                  required under the pension plan will be paid to the Executive
                  semi-monthly.

         (i)      "person" shall have the meaning ascribed to it in the Canada
                  Business Corporations Act.

         (j)      "subsidiary" of a corporation means, at any time, a
                  corporation of which the Corporation has control at that time,
                  whether directly or indirectly through one or more
                  subsidiaries.


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2.       EMPLOYMENT

2.1      Position, Duties and Responsibilities of Executive

         The Executive shall have such responsibilities and powers as the Board
of Directors of the Corporation or the by-laws of the Corporation or the
Executive's superiors may from time to time prescribe. Except as expressly
approved by the Board, the Executive shall devote the whole of his time to the
Executive's duties hereunder and shall use his best efforts to promote the
interests of the Corporation. As of the effective date of this Agreement, the
Board of Directors of the Corporation has agreed to allow the Executive to
retain his position as a Director of Equitorial Energy Inc. on the condition
that there is no conflict of interest with his role and responsibilities towards
the Corporation. The Executive shall, during the term of this Agreement:

         (a)      perform such managerial duties and responsibilities for the
                  Corporation as may be assigned to him by the Chief Executive
                  Officer and by the Board of the Directors of the Corporation,
                  and at no additional remuneration, shall serve in such other
                  comparable positions with affiliates and associates of the
                  Corporation as the Board of Directors of the Corporation may
                  from time to time determine, and

         (b)      accept such office or offices to which he may be elected or
                  appointed by the Chief Executive Officer of by the Board of
                  Directors of the Corporation in addition to those of Senior
                  Vice President, Business Development and General Counsel of
                  the Corporation, provided that the performance of the duties
                  of such offices shall be consistent with the scope of the
                  duties assigned in accordance with or as provided for in
                  section 2.1(a) above.

2.2      Term of Agreement

         The Term of this Agreement shall commence on the date hereof, and shall
continue in effect to and including the earlier of:

         (a)      the date of voluntary retirement of the Executive in
                  accordance with the retirement policies established for senior
                  employees of the Corporation; or

         (b)      the voluntary resignation of the Executive other than a
                  voluntary resignation pursuant to section 2.6(b)(ii) or
                  section 2.6(b) (iii) hereof.

2.3      Termination of Agreement upon Disability of Executive

         If at the end of any month the Executive is and has been for a period
of more than twelve (12) consecutive months unable to perform the duties
specified pursuant to this Agreement in the normal and regular manner due to
mental or physical disability, this Agreement 


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may be terminated by the Corporation on 30 days notice. Notwithstanding anything
contained in this Section 2.3, the Executive shall be entitled to all benefits
provided under the disability and pension plans of the Corporation or its
affiliates applicable to the Executive at the date of this Agreement.

2.4      Termination of Agreement upon Death of Executive

         If the Executive dies, this Agreement shall be terminated immediately
on the date of the Executive's death. Provided that the Executive is insurable
at reasonable premium rates, the Corporation shall cause to be obtained and
maintained during the term of this Agreement a life insurance policy naming
beneficiaries specified by the Executive, which life insurance policy shall
provide a lump sum payment of not less than two times the Executive's salary to
such beneficiaries in the event that the Executive dies during the term of this
Agreement. This insurance policy shall be in addition to and not in substitution
for any insurance policies provided to the Executive under the Corporation's
benefit plans and programmes.

2.5      Termination of Agreement by the Corporation for Cause

         The Corporation may terminate this Agreement at any time without notice
in the event the Executive shall be convicted of a criminal act, or for other
sufficient cause, pursuant to written notice setting forth particulars of such
cause.

2.6      Severance Entitlement upon Termination of Employment of the Executive

         (a)      The provisions of sub-section 2.6(c) shall not apply to, and
                  the Executive shall not be entitled to receive any severance
                  payments or other benefits as provided for in this Agreement
                  as a result of any circumstance where the termination of the
                  Executive's employment arises from the occurrence of any event
                  described in any of sections 2.2, 2.3, 2.4 or 2.5 hereof.

         (b)      The provisions of sub-section 2.6(c) shall, except as
                  specifically provided in sub-section 2.6(a) hereof, apply in
                  all circumstances where the Executive's employment with the
                  Corporation terminates, including, without limiting the
                  generality of the foregoing, any of the following
                  circumstances: 

                  (i)      where the Corporation terminates the employment of
                           the Executive for any reason other than for cause;
                           or,

                  (ii)     where the Executive, by notice in writing to the
                           Corporation, terminates his employment with the
                           Corporation within ninety (90) days following
                           constructive dismissal of the Executive.


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                  (iii)    where the Executive, by notice in writing to the
                           Corporation, terminates his employment with the
                           Corporation within ninety (90) days following a
                           change of control of the Corporation as described in
                           section 1(c)(i).

         (c)      In the event of the termination of the Executive's employment
                  as provided in sub-section 2.6(b) hereof, the following
                  provisions shall apply: 

                  (i)      the Executive shall be entitled to receive and the
                           Corporation shall forthwith pay to the Executive, a
                           retiring allowance (hereinafter called the "Retiring
                           Allowance") in an undiscounted cash amount equal to
                           one (1) month's base salary, inclusive of the foreign
                           service supplement, multiplied by the number of years
                           of service of the Executive with the Corporation
                           subject to a minimum entitlement and payment equal to
                           twenty-four (24) months' base salary and a maximum
                           entitlement and payment equal to thirty (30) months'
                           base salary;

                  (ii)     in addition, the Executive shall be entitled to
                           receive and the Corporation shall forthwith pay to
                           the Executive an undiscounted cash amount equal to
                           the value to the Executive of all those benefits
                           plans and programmes provided by the Corporation to
                           its regular employees resident in Canada and listed
                           in Schedule "B" as they currently exist attached
                           hereto for a period of time equal to one (1) month
                           for every year of service of the Executive with the
                           Corporation at the time of termination with a minimum
                           entitlement and payment equal to twenty-four (24)
                           months of benefits value and a maximum entitlement
                           and payment equal to thirty (30) months of benefits
                           value. All amounts payable under this sub-section
                           2(c)(ii) shall be determined by a Fellow of the
                           Canadian Institute of Actuaries acceptable to the
                           Corporation and the Executive;

                  (iii)    In addition, the Executive shall be entitled to
                           receive and the Corporation shall forthwith pay an
                           undiscounted amount equal to the product obtained by
                           multiplying by two (2) the Executive's target bonus
                           under the Corporation's total compensation plan or
                           such other plan that may have replaced the total
                           compensation plan for the year in which the
                           Executive's employment is terminated;

                  (iv)     the Executive shall also be entitled to receive on
                           termination the normal and any supplementary pension
                           benefits in effect on the date of this Agreement
                           according to the terms of the Corporation's
                           registered pension plans and executive superannuation
                           undertakings, or according to similar provisions of
                           any successor plan, of which the Executive is a
                           member at 

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                           the date of termination of the Executive's employment
                           (collectively hereinafter called the "Plans"). The
                           Executive's total pension entitlement shall be
                           determined on the basis that the Executive had two
                           (2) additional years of credited service and age
                           under the Plans in which he is participating at his
                           date of termination of employment over and above his
                           actual age or years of credited service. In addition,
                           such additional years of credited service shall be
                           included for the purpose of determining final or best
                           average earnings assuming that the Executive's
                           monthly base salary at the date of termination of
                           employment would have continued unchanged during the
                           period of additional credited service. Any portion of
                           the total pension entitlement of the Executive not
                           eligible to be paid under the provisions of the
                           registered pension plans of the Corporation shall be
                           payable as supplementary payments in accordance with
                           the executive superannuation undertakings. If the
                           Executive has not vested in any or all of the Plans
                           on the date of termination of his employment, he
                           shall be or shall be deemed to be vested in any of
                           the Plans in which he is not vested on the date of
                           termination of his employment;

                  (v)      all options for the purchase of shares of the
                           Corporation which have been granted by the
                           Corporation to the Executive under the Incentive
                           Stock Option Plan (1990) or such other plan that may
                           have replaced the Incentive Stock Option Plan (1990)
                           or otherwise to the date of termination of the
                           Executive but not yet vested shall immediately vest
                           on the date of termination of the Executive and the
                           Executive shall be entitled to exercise any or all
                           options for the purchase of shares of the Corporation
                           for a period of two (2) years from the date of
                           termination of the Executive whether such options to
                           purchase vested on or before the date of termination
                           of the Executive;

                  (vi)     the Corporation and the Executive agree that the
                           provisions of section 2.6(c) are fair and reasonable
                           and that the amounts payable by the Corporation to
                           the Executive pursuant to section 2.6(c) are
                           reasonable estimates of the damages which will be
                           suffered by the Executive in the event of the
                           termination of his employment with the Corporation in
                           any and all of the circumstances set out in section
                           2.6(b) and shall not be construed as a penalty; and,

                  (vii)    all amounts paid by the Corporation to the Executive
                           pursuant to section 2.6(c) shall satisfy and forever
                           discharge all liabilities, claims or 

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                           actions that the Executive may or shall have against
                           the Corporation arising from the termination of
                           employment of the Executive whether at common law or
                           under statute or otherwise and such payment shall be
                           made against delivery by the Executive to the
                           Corporation of a release in form and terms reasonably
                           satisfactory to the Corporation and the Executive.


2.7      DIRECTORS' AND OFFICERS' LIABILITY INSURANCE

         Unless otherwise agreed between the parties hereto, the Corporation
shall purchase and maintain, or cause to be purchased and maintained, while the
Executive remains an officer of the Corporation and for a period of 10 years
thereafter, directors' and officers' errors and omissions insurance for the
benefit of the Executive on terms no less favourable in terms of coverage, and
amounts, to the extent available on reasonable commercial terms, than such
insurance maintained in effect by the Corporation on the date thereof.

3.       COMPENSATION

         The Executive shall be entitled to receive compensation set by the
Compensation Committee of the Board. The Executive shall also be entitled to
receive the benefits listed in Schedule "A", as amended from time to time, in
accordance with the Corporation's policies on benefits.

4.       INTEGRATION

         Except for the Executive's rights to continued participation in the
Corporation's employee benefit plans, including, without limitation, the
Corporation's or its affiliates' stock option plans and savings plans and
conditions of employment generally available to other employees of the
Corporation or its affiliates, this Agreement contains the entire agreement
between the parties and supersedes all prior oral and written agreements,
understanding, commitments and practices between the parties, including all
prior employment agreements, whether or not fully performed by the Executive
before the date of this Agreement. No amendments to this Agreement may be made
except in writing signed by both parties.

5.       CONFIDENTIAL INFORMATION AND NON-COMPETITION CLAUSES

(a)      In the event of termination of employment of the Executive, the
         Executive agrees to keep confidential all information of a confidential
         or proprietary nature concerning the Corporation, its subsidiaries and
         affiliates and their respective operations, assets, finances, business
         and affairs and further agrees not to use such information for personal


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         advantage or the advantage of an employer, provided that nothing herein
         shall prevent disclosure of information which is publicly available or
         which is required to be disclosed under appropriate statutes, rules of
         law or legal process. In the event of termination of employment of the
         Executive, the Executive shall return to the Corporation all documents,
         computer disks and other media which contains information which is
         proprietary to the Corporation. 

(b)      In the event of Termination, the Executive agrees that, without the
         prior written consent of the Board of Directors of the Corporation, for
         a period of 18 months following Termination, neither Executive nor any
         of Executive's agents, employees, affiliates or other representatives
         (including any person or entity directly or indirectly, through one or
         more intermediaries, directing the Executive or controlled by the
         Executive or affiliated with the Executive) (collectively referred to
         as the "Representatives"), will, nor will they encourage any person to
         (i) purchase, offer or agree to purchase, directly or indirectly, any
         securities or material assets of the Corporation, (ii) make, or in any
         way participate, directly or indirectly, in any "solicitation" of
         "proxies" to vote or "consents" (as such terms are used in the rules
         and regulations of the Securities and Exchange Commission) with respect
         to the Corporation's Ordinary Shares; (iii) directly or indirectly make
         any public announcement with respect to any transaction involving the
         Corporation or its securities or assets of any subsidiary thereof; (iv)
         form, join or in any way participate in a "group" within the meaning of
         Section 13(d)(3) of the U.S. Securities Exchange Act of 1934, as
         amended, in connection with any of the foregoing; (v) otherwise act,
         alone or in concert with others, to seek to control or influence the
         management, Board of Directors or policies of The Corporation; (vi)
         assist, advise or encourage any other person in doing any of the
         foregoing. 

(c)      In addition, Executive agrees that for a period of 18 months following
         Termination, the Executive and its Representatives shall not hire any
         employee or former employee of The Corporation provided however that
         the foregoing provision will not prevent the Executive or its
         Representatives from hiring any such employee or former employee who
         contacts the Executive on his or her own initiative or is discovered
         through a general solicitation for employment.

6.       SEVERABILITY

         The invalidity and unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provisions of this
Agreement, which shall remain in full force and effect.

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7.       BENEFIT OF AGREEMENT

         This Agreement shall enure to and be binding upon the Corporation and
its successors and the Executive and his legal representatives but otherwise it
is not assignable. It shall be a condition of any transfer by the Corporation of
the Executive to any affiliate or associate of the Corporation that, on request
of the Executive, such affiliate or associate agree to observe all the covenants
of and be bound by all obligations imposed on the Corporation under this
Agreement. The failure to do so shall be deemed to constitute a constructive
dismissal of the Executive for the purposes of section 2.6.

8.       CHOICE OF LAW

         This Agreement shall be governed and interpreted in accordance with the
laws of the Province of Alberta, which Province shall be the sole and proper
forum with respect to any suit brought with respect to this Agreement.

9.       COPY OF AGREEMENT

         The Executive hereby acknowledges having received a copy of this
Agreement duly signed by the Corporation.

         IN WITNESS WHEREOF the parties hereto have duly executed and delivered
this Agreement.

                                             GULF CANADA RESOURCES LIMITED

                                             \s\  Craig Glick
                                             -----------------------------------

                                             \s\  Richard Auchinleck
                                             -----------------------------------

\s\  Joanne Alexander                        \s\  Henry Sykes
----------------------------------           -----------------------------------
Witness                                      Henry W. Sykes



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                                  SCHEDULE "A"

                                CANADIAN BENEFITS

GROUP LIFE INSURANCE:

Life Insurance Plan (for all employees hired on or after May 1, 1989):

Basic coverage equal to two times annual salary - 100% Corporation paid.

Additional voluntary insurance and dependent coverage also available.

BUSINESS ACCIDENT INSURANCE:

The Corporation pays the premium for accident insurance while on Corporation
business or travel. The amount of the insurance is three times annual salary to
a maximum benefit of $200,000.00.

LONG TERM DISABILITY:

The plan provides coverage to two-thirds of salary to a maximum of $6,000.00 per
month. Premiums cost shared - Corporation pays 2/3 and employee pays 1/3.

SUPPLEMENTARY HEALTH BENEFIT:

The Plan provides 100% semi-private hospital and out-patient expenses. After an
annual $25.00 deductible per family, the plan pays 85% of eligible expenses,
including drugs. 50% cost sharing arrangement between Corporation and employee.

VISION CARE:

The plan covers 85% of cost for glasses and/or contact lenses to maximum of
$175.00 per person every two calendar years. 100% Corporation paid.

DENTAL PLAN:

The plans pays 80% of routine dental care and 50% of major dental care, to a
maximum of $1,000.00 per year per person. 100% Corporation paid.


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PROVINCIAL HEALTH CARE:

The Corporation shares the cost of health care premiums in Alberta.

PERQUISITE ALLOWANCE:

Senior Managers of the Corporation are eligible for a $12,000.00 annual
perquisite allowance.

LUNCHEON CLUBS:

All employees have the privilege of joining a luncheon club. Luncheon club
memberships are taken in the Corporation's name so that they may be reassigned
to other individuals in the event the incumbent retires or leaves the
Corporation.

HEATED PARKING:

One underground parking stall shall be provided.

SAVINGS ALLOWANCE:

The Corporation provides all employees with a savings allowance equal to 4.5% of
their annual salary.

OUTPLACEMENT:

Outplacement services in accordance with the Corporation's policies and
practices.