CANADA — Suncor Energy has agreed to sell interests in three offshore Canadian oil assets to London-based Ithaca Energy for C$1.2 billion in upfront cash.

The agreement covers Suncor’s 48-per-cent interest in Terra Nova, 40-per-cent stake in White Rose and 38.6-per-cent interest in West White Rose, the companies said Sunday. An additional payment of as much as C$350 million is tied to future oil prices.

Ithaca enters offshore eastern Canada

Ithaca said the acquisition is its first international transaction and will establish a position in offshore eastern Canada. It will assume the assets’ future liabilities and investment commitments.

Those obligations include a C$500-million regulatory well-compliance program at Terra Nova beginning in 2027 and estimated abandonment and lease liabilities totalling C$1.4 billion.

Suncor keeps Hebron and Hibernia

Suncor said the sale is intended to focus capital on opportunities that generate the greatest long-term shareholder value. It will retain its interests in the Hebron and Hibernia offshore projects.

The transaction is expected to close in early 2027, subject to the usual conditions and approvals. Suncor separately said it is increasing monthly share repurchases under its normal-course issuer bid to C$750 million from C$500 million beginning in October.

Source: Reuters, October 5.

Lead image: Suncor Energy corporate logo, used for identification, via Techno-Science.net; not an image of the offshore assets.