Suncor to sell offshore Canada oil stakes to Ithaca for $842m
Canada's Suncor Energy said on Sunday it had agreed to sell its interests in three offshore oil assets to London-based Ithaca Energy ITH.L for C$1.2-billion ($841.69-million) in upfront cash.
The deal covers Suncor's 48% interest in Terra Nova, 40% stake in White Rose and 38.6% interest in West White Rose, and includes an additional contingent payment of up to C$350-million tied to future oil prices.
Ithaca will also assume investment commitments and all future liabilities associated with the assets, including a C$500-million regulatory well compliance program starting at Terra Nova beginning in 2027 and the estimated abandonment and lease liabilities totalling C$1.4-billion, Suncor said.
Ithaca said the acquisition marks its first international deal and will establish a presence in offshore eastern Canada.
The deal is expected to be immediately accretive to Ithaca's adjusted EBITDAX, free cash flow and dividend per share from completion, Ithaca said.
"This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value," Suncor CEO Rich Kruger said.
Suncor will retain its interests in the Hebron and Hibernia offshore projects.
Separately, Suncor said it has increased share repurchases under its normal course issuer bid to C$750-million per month from C$500-million beginning in October.
The transaction is expected to close in early 2027, the companies said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
SABAT Batteries is a renowned brand in the battery industry, manufacturing a wide range of batteries at its state-of-the-art production facility in...
VISIT SHOWROOM
We partner growth of our select clients through our comprehensive and competitive integrated international logistics, trade finance and information...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
