Suncor Energy (TSX: SU) agreed to sell its stakes in three offshore Newfoundland oil projects to London-based Ithaca Energy (LON: ITH) for C$1.2 billion (US$860 million) in cash, plus up to C$350 million (US$250 million) linked to oil prices.
The sale covers a 48% interest in Terra Nova, 40% in White Rose and 38.6% in West White Rose, Suncor said. Suncor keeps its Hibernia and Hebron interests. Ithaca plans to take over as operator of Terra Nova.
Ithaca assumes all future liabilities tied to the assets, including a C$500 million Terra Nova well compliance program that begins in 2027 and an estimated C$1.4 billion in abandonment and lease obligations, about C$1.9 billion in all. The sale is effective July 1, 2026, and should close in early 2027 pending regulatory approvals and partner consents.
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Suncor raised its monthly share repurchases from C500milliontoC750 million beginning in October. CEO Rich Kruger said Suncor is “aligning our portfolio around our competitive advantages”. The company kept its commitments through 2028 to add C$2 billion in normalized free funds flow and cut its WTI breakeven by US$5 a barrel.
Ithaca said the deal is its first international acquisition and gives it a presence off Canada’s east coast. Press reports call the sale a pullback from a region where Suncor has operated for decades, refocusing it on its northern Alberta oil sands.
