Suncor offshore oil sale to Ithaca Energy

Suncor Energy has reached a definitive agreement to sell its interests in three offshore oil projects in eastern Canada—specifically Terra Nova, White Rose, and West White Rose—to London-based Ithaca Energy for C$1.2 billion in cash. The deal may include an additional variable payment of up to C$350 million depending on oil prices. As part of the transaction, Ithaca Energy will assume approximately C$1.9 billion in future liabilities and investment commitments, including well compliance and abandonment obligations. This acquisition marks Ithaca Energy’s first international expansion.

Following the sale, Suncor intends to refocus its portfolio on its northern Alberta oil sands and will increase its monthly share repurchases. The transaction is expected to close in early 2027, subject to regulatory approval.

However, the deal has faced scrutiny due to Ithaca Energy’s majority ownership by the Delek Group, an Israeli company. Critics have raised concerns that the acquisition may conflict with Prime Minister Mark Carney’s stated commitment to ban trade in goods from illegal Israeli settlements, noting that the Delek Group is listed in a United Nations database regarding activities in occupied Palestinian territories.

In the United Kingdom, concerns have been raised regarding a major dividend payout from Ithaca Energy, with reports indicating the Delek Group is set to receive nearly £100m from profits generated by UK oil fields at a time when the UK is targeting firms linked to illegal Israeli settlements. In Canada, the provincial government of Newfoundland and Labrador has indicated it does not intend to block Ithaca Energy’s entry into the local oil sector, despite warnings from human rights advocates and legal experts that failure to intervene could pose liability risks for federal and provincial governments.