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 Novabeginning 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.