Suncor Energy Centre
CALGARY — Suncor Energy is selling its stakes in three Newfoundland and Labrador offshore oil projects to U.K.-based Ithaca Energy for $1.2 billion in upfront cash as the company sharpens its focus on long-life oilsands assets.
The Calgary-based producer says the deal includes its 48 per cent interest in Terra Nova, 40 per cent interest in White Rose and 38.6 per cent interest in West White Rose.
Suncor could also receive up to $350 million in additional payments tied to future oil prices.
Ithaca Energy is one of the largest independent operators in the U.K. North Sea and intends to assume operatorship of Terra Nova as part of its entry into Canada’s East Coast offshore industry.
The buyer will also take on investment commitments and all future liabilities associated with the assets, including a $500-million regulatory well compliance program beginning in 2027 at Terra Nova and an estimated $1.4 billion in abandonment and lease liabilities.
Suncor will retain its interests in the Hebron and Hibernia offshore projects.
“This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value,” Suncor CEO Rich Kruger said.
“We are aligning our portfolio around our competitive advantages and the strengths of our unparalleled, physically-integrated business, underpinned by large-scale, long-life oil sands resources.”
The transaction has an effective date of July 1 and is expected to close early in 2027, subject to regulatory approvals, partner consents and customary closing conditions.
At the same time, Suncor is increasing monthly share repurchases from $500 million to $750 million beginning in October.
The company is also maintaining targets announced at its 2026 Investor Day to increase normalized free funds flow by $2 billion and reduce its West Texas Intermediate breakeven price by US$5 per barrel through 2028.
Kruger said those commitments remain unchanged and reflect the strength of Suncor’s integrated asset base.
The offshore sale further concentrates Suncor’s portfolio around its western Canadian operations, including large-scale oilsands mining and in-situ production.
Suncor’s broader business also includes upgrading, refining operations in Canada and the United States, energy marketing and trading, and its Petro-Canada retail and wholesale network.
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