Suncor Energy has agreed to divest its stakes in three east coast offshore assets in Canada to Ithaca Energy for $860m (C$1.2bn) in upfront cash.
The deal encompasses Suncor’s 48% holding in Terra Nova, 40% stake in White Rose and 38.6% position in West White Rose.
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On top of the upfront consideration, Ithaca has agreed to pay up to an additional C$350m contingent on future oil prices.
Ithaca, a major independent producer operating in the UK North Sea, will also take on investment commitments and all future liabilities tied to the three properties.
Those obligations include a C$500m regulatory well compliance programme at Terra Nova scheduled to begin in 2027, along with total estimated abandonment and lease liabilities valued at C$1.4bn.
As part of its move into Canada’s east coast offshore sector, Ithaca plans to become the operator of the Terra Nova field.
Suncor CEO Rich Kruger said: “This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value.
“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.”
Suncor will continue to hold its positions in the Hebron and Hibernia fields.
The agreement carries an effective date of 1 July 2026, with completion anticipated in early 2027.
Closing remains conditional on regulatory approvals, partner consents and other customary requirements.
Separately, Suncor announced it is raising monthly share repurchases under its normal course issuer bid to C$750m from C$500m, with the higher rate taking effect in October 2026.
The company added that commitments outlined at its 2026 Investor Day are unaffected by the divestiture.
Those targets include growing normalised free funds flow by C$2bn and lowering its West Texas Intermediate (WTI) breakeven by $5 per barrel through 2028.
Kruger added: “Our Investor Day commitments to grow normalised free funds flow and reduce WTI breakeven remain unchanged, reflecting the strength of our integrated asset base and confidence in our ability to deliver.”
Suncor’s operations cover oil sands mining and in situ production, upgrading, offshore output, refining in Canada and the US, and the Petro-Canada retail and wholesale network.
