Suncor Energy Inc. SU-T is selling its interests in three oil fields off Newfoundland to London-based Ithaca Energy PLC IACAF. The deal, worth up to $1.55-billion, marks a major reduction in the Calgary-based company’s presence in the region, where it has been active for decades.
Suncor said on Sunday the sale of stakes in the Terra Nova, White Rose and West White Rose projects is aimed at honing the company’s focus on its main cash-generating assets in northern Alberta, where it is one of the largest players.
“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,” Rich Kruger, Suncor’s chief executive officer, said in a statement.
The company is selling 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 $1.2-billion.
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Ithaca, one of the largest operators in the British North Sea, could also be on the hook for an additional contingent payment of up to $350-million, based on future oil prices.
The deal is expected to close in early 2027. Suncor said it will retain its stakes in the Hibernia and Hebron fields, which are also located off Canada’s East Coast.
Ithaca will become the operator of Terra Nova. Petro-Canada, which Suncor acquired 17 years ago, discovered that field in 1984.
Ithaca said the deal marks its first international acquisition. The interests provide long-life reserves in an operating environment that is similar to that on the U.K. Continental Shelf, executive chairman Yaniv Friedman said in a statement.
Suncor also said on Sunday it is increasing the budget it has earmarked for normal-course share repurchases to $750-million per month from $500-million.