Ithaca buys Suncor's Canadian offshore oil stakes for up to $1.1bn

London-listed Ithaca Energy has agreed to buy Suncor Energy’s interests in three offshore oil assets off Canada’s east coast, marking the UK North Sea producer’s first international acquisition.

The companies said on Sunday that Ithaca will pay C$1.2 billion (US$841.7 million) in upfront cash, with a further payment of up to C$350 million (US$250 million) tied to future oil prices, Reuters reported. The deal covers Suncor’s 48% interest in Terra Nova, 40% in White Rose and 38.6% in West White Rose, all in shallow waters off Newfoundland and Labrador.

Ithaca said the assets will add long-life production and support cash flow and dividend growth. Executive chairman Yaniv Friedman called it “the next era of growth for Ithaca Energy” and said the company would assume operatorship of Terra Nova, where it also takes on a US$500 million regulatory well-compliance programme from 2027 and about US$1.4 billion of abandonment and lease liabilities, according to Suncor’s announcement.

The transaction has an effective date of 1 July 2026 and is expected to close in early 2027, subject to regulatory approvals and partner consents. Suncor will retain its interests in Hebron and Hibernia.

Separately, Suncor raised its monthly share buybacks from US$500 million to US$750 million starting in October.