CALGARY — Calgary-based Suncor Energy is selling stakes in three Newfoundland and Labrador offshore oil projects in a deal worth up to $1.55 billion.The company announced on Sunday it had reached an agreement with UK-based Ithaca Energy to sell its 48% interest in Terra Nova, 40% interest in White Rose, and 38.6% interest in West White Rose.The deal includes $1.2 billion in upfront cash and a potential additional payment of up to $350 million, depending on future oil prices.“This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value,” said Suncor president and CEO Rich Kruger.“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.”While Suncor will retain its interests in the Hibernia and Hebron offshore fields, the sale represents a substantial reduction in the company’s East Coast operations..NEWSFLASH: Guilbeault owns Suncor shares in ‘blind trust’ portfolio — called CPP.Ithaca will become the operator of Terra Nova and assume the assets’ spending commitments and future liabilities.Those include a $500 million regulatory well compliance program scheduled to begin at Terra Nova in 2027, along with estimated abandonment and lease liabilities totalling $1.4 billion.The agreement marks the first international acquisition for Ithaca, which is one of the largest independent oil and gas operators in the North Sea.The transaction has an effective date of July 1, 2026, and is expected to close in early 2027, subject to regulatory approvals, partner consents and other closing conditions.“This acquisition marks the next era of growth for Ithaca Energy as we make our inaugural international acquisition in Offshore East Coast Canada,” Ithaca executive chairman Yaniv Friedman said.“The transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base and replicate our success in the United Kingdom Continental Shelf... through disciplined international expansion in regions we believe we can create long-term value for our shareholders.”Suncor also announced it was increasing its planned normal-course share repurchases to $750 million per month, up from $500 million..Heather Exner-Pirot, Director of Energy, Natural Resources and Environment at the Macdonald-Laurier Institute interpreted the offshore sale as a signal of Suncor’s priorities and a possible shift in the company’s focus towards Alberta oil sands development.“Reading between the lines: focused on new oil sands developments,” she said of the transaction on social media platform X.Meanwhile, Cenovus Energy CEO Jon McKenzie said his company would remain committed to its Newfoundland offshore operations, particularly West White Rose.When asked about the Suncor sale during a conference call on Monday morning regarding Cenovus’ acquisition of Athabasca Oil, McKenzie said his company still sees the Newfoundland and Labrador region as profitable.“We really like West White Rose. We're vested in that and production there is imminent,” he said.“I'm sure Suncor had their own reasons for doing what they did and we continue to see that as a profitable area of the world in which we exist and we understand what our footprint is there.”
