Suncor Energy (TSX: SU) (NYSE: SU) has agreed to sell its stakes in three East Coast offshore oil projects to Ithaca Energy plc for $1.2 billion in upfront cash, as the company pares back its portfolio around its oil sands business.
The deal covers Suncor’s 48% interest in Terra Nova, its 40% interest in White Rose and its 38.6% interest in West White Rose. Ithaca could also pay up to $350 million more in contingent payments if Brent crude prices clear set thresholds through September 2028.
As part of the deal Ithaca will also assume roughly $1.4 billion in estimated abandonment and lease obligations, along with a $500 million regulatory well compliance program at Terra Nova scheduled to start in 2027.
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“This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value,” said CEO Rich Kruger. “We are aligning our portfolio around our competitive advantages and the strengths of our unparalleled, physically-integrated business, underpinned by large-scale, long-life oil sands resources.”
Suncor isn’t leaving the region entirely. It will keep its interests in the Hebron and Hibernia fields.
Alongside the sale, the company raised its share buybacks from $500 million to $750 million per month starting in October. Kruger said the targets set out at Suncor’s 2026 Investor Day remain unchanged. Those call for growing normalized free funds flow by $2 billion and cutting the company’s WTI breakeven by US$5 per barrel through 2028.
For Ithaca, the deal marks its first acquisition outside the UK North Sea, where it ranks among the largest independent producers. The company plans to take over as operator of Terra Nova, while White Rose remains operated by Cenovus Energy.
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Ithaca pointed to the similarities between the two shallow water basins, including the use of floating production vessels, as a key reason for the move. It estimates the assets hold 103 million barrels of oil equivalent in proven and probable reserves and will add about 30,000 barrels of oil equivalent per day on average between 2027 and 2031, peaking at 35,000 to 40,000 in 2029.
Much of that growth hinges on West White Rose, where first production is expected in the fourth quarter of 2026.
“The Transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base,” said Yaniv Friedman, Ithaca’s executive chairman.
Ithaca plans to fund the purchase with cash on hand, its borrowing base facility and secured financing in Canada.
The sale carries an effective date of July 1, 2026, and is expected to close in early 2027, subject to regulatory approvals and partner consents.
Suncor Energy last traded at $99.15 on the TSX.
