Suncor Energy has agreed to sell a portfolio of offshore Canadian oil interests to Ithaca Energy for C$1.2 billion in upfront cash, giving the UK-listed producer its first major international expansion.
The transaction covers Suncor’s 48% interest in Terra Nova, 40% stake in White Rose and 38.6% interest in West White Rose.
The agreement also includes potential additional consideration of as much as C$350 million depending on future oil prices.
Ithaca will assume associated future investment and liabilities, including a C$500 million regulatory program for Terra Nova beginning in 2027 and estimated abandonment and lease obligations.
For Ithaca, the acquisition marks a strategic move beyond its existing UK-focused portfolio and establishes a production position offshore eastern Canada.
For Suncor, the sale further concentrates the company’s asset base while releasing capital that can be returned to shareholders or deployed elsewhere.
Suncor said it will increase its monthly share-repurchase program to C$750 million from C$500 million beginning in October.
The company will retain its interests in the Hebron and Hibernia offshore projects.
Completion is expected in early 2027, subject to customary conditions and approvals.
Investors will watch Ithaca’s ability to integrate the Canadian assets and manage their future capital and decommissioning obligations, as well as Suncor’s use of the proceeds.
