Suncor to Sell Newfoundland Oil Field Stakes to Ithaca Energy for Up to $1.55-Billion
Suncor Energy Inc. announced it is selling its interests in three offshore Newfoundland oil fields to London-based Ithaca Energy PLC for a base price of $1.2-billion, with up to $350-million in contingent payments. The deal, expected to close in early 2027, marks Ithaca's first international acquisition and allows Suncor to focus on its northern Alberta oil sands assets.
Suncor Energy Inc. announced on Sunday that it is selling its stakes in three oil fields off the coast of Newfoundland to London-based Ithaca Energy PLC. The total value of the transaction could reach up to $1.55-billion.
Under the terms of the agreement, Suncor is divesting its 48-per-cent interest in Terra Nova, its 40-per-cent interest in White Rose, and its 38.6-per-cent interest in West White Rose for a base price of $1.2-billion. Ithaca could pay an additional contingent amount of up to $350-million based on future oil prices. The deal is expected to close in early 2027.
Following the transaction, Ithaca will become the operator of the Terra Nova field. Petro-Canada originally discovered the Terra Nova field in 1984, and Suncor acquired Petro-Canada 17 years ago. This deal marks Ithaca Energy's first international acquisition, expanding its operations outside the British North Sea.
Despite the sale, Suncor will retain its stakes in the Hibernia and Hebron fields off Canada’s East Coast. Suncor CEO Rich Kruger stated that the sale aligns the company's portfolio with its competitive advantages in the northern Alberta oil sands.
In conjunction with the announcement, Suncor increased its normal-course share repurchase budget from $500-million to $750-million per month.