Suncor sells Newfoundland and Labrador offshore interests to Ithaca Energy

Suncor Energy has reached an agreement to sell its interests in three offshore oil projects off Newfoundland and Labrador to UK-based Ithaca Energy for $1.2 billion in cash, with the potential for an additional $350 million depending on future oil prices.

The agreement covers Suncor's 48 per cent interest in the Terra Nova project, 40 per cent interest in White Rose and 38.6 per cent interest in West White Rose.

Under the agreement, Ithaca will also assume future investment commitments and liabilities associated with the assets.

That includes a regulatory well-compliance program at Terra Nova valued at approximately $500 million beginning in 2027, as well as estimated abandonment and lease liabilities of about $1.4 billion.

The transaction is expected to close in early 2027, subject to regulatory and other approvals.

Suncor says it will retain its interests in the Hibernia and Hebron offshore projects.

The company says the sale is part of a strategy to focus its capital on other parts of its business. Suncor announced at its investor day earlier this year that it was targeting increased production and improved free cash flow through 2028.

As part of Sunday's announcement, Suncor also says it is increasing its monthly share repurchase program from $500 million to $750 million, beginning in October.

Ithaca Energy, which is based in London and operates primarily in the UK North Sea, says the acquisition will mark its first international expansion and will establish a presence in offshore eastern Canada. The company expects the assets to add approximately 30,000 barrels of oil equivalent per day to its production over the medium term.

The deal remains subject to closing conditions, with completion currently expected in early 2027.