Suncor sells stakes in several Newfoundland offshore oil projects to Ithaca Energy
In a news release, Calgary-based Suncor Energy said Ithaca would buy its interests in the Terra Nova, White Rose and West White Rose developments off the coast of Newfoundland for $1.2 billion in cash. Ithaca has also agreed to an additional contingent payment of up to $350 million, based on future oil prices, the release said.
Chief executive Rich Kruger said the sale helps focus Suncor's efforts on "opportunities that generate the greatest long-term shareholder value."
The sell-off is the second big shakeup in ownership in Newfoundland and Labrador's offshore oil industry this year. In June, BP announced it had signed a deal to sell its shares in Equinor's proposed Bay du Nord project. Equinor is expected to decide early next year whether it will proceed with Bay du Nord.
Suncor would not provide an interview Monday, but a spokesperson said the company will keep its stakes in two other Newfoundland offshore oilfields, called Hibernia and Hebron.
"We are proud of our long history of operating offshore Newfoundland and Labrador and the strong relationships we have built across the province," said Christine Randall.
"At this time, we expect that employees who support these operations will continue employment with the buyer as part of the transaction," she added.
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Headquartered in Scotland, Ithaca largely owns oil operations in the North Sea. The acquisition deal announced Sunday would be the company's first move into the eastern Canadian offshore industry, a news release said.
The company intends to buy Suncor's 48% operating interest in the Terra Nova oilfield off Newfoundland. It will also acquire a 40% share of the White Rose field, which is operated by Cenovus Energy Inc., and a 38.6% share of the assets in West White Rose, which is an extension of the White Rose oilfield.
First production from the West White Rose extension is expected later this year.
Ithaca will also assume investment commitments and all future liabilities associated with the assets, including a $500-million regulatory well compliance program starting in 2027 at Terra Nova and total estimated abandonment and lease liabilities of $1.4 billion, Suncor said.
Ithaca said the sale is the beginning of the company's next era of growth.
"We are excited to welcome an experienced operating team with deep regional expertise and to build on the strong operating history of these assets," said Yaniv Friedman, executive chairman, in a news release Monday.
The deal has an effective date of July 1, 2026, and is expected to close in early 2027, subject to customary closing conditions, regulatory approvals and partner consents.
