Suncor Energy to sell Canadian offshore oil stakes to Ithaca Energy

Suncor Energy has agreed to sell its interests in three offshore oil projects in eastern Canada to London-based Ithaca Energy for C$1.2 billion in cash. The deal includes a 48% stake in Terra Nova, a 40% stake in White Rose, and a 38.6% stake in West White Rose. Additionally, the agreement includes a variable payment of up to C$350 million contingent on oil prices.

As part of the transaction, Ithaca Energy will assume approximately C$1.9 billion in future liabilities and investment commitments. This includes a C$500 million well compliance program for Terra Nova scheduled to begin in 2027, as well as an estimated C$1.4 billion in lease and facility abandonment obligations. This marks Ithaca Energy’s first international acquisition, establishing its presence in Canada’s offshore sector.

Suncor will retain its interests in the Hebron and Hibernia projects. Following the sale, the company plans to refocus its portfolio on its competitive advantages, such as its northern Alberta oil sands. Suncor also announced it will increase its monthly share repurchases from C$500 million to C$750 million starting in October. The transaction is expected to close in early 2027, pending regulatory approvals.