Suncor Sells Newfoundland Oil Stakes for Up to $1.55 Billion

Suncor Energy Inc. (SU-T) has announced the sale of its stakes in three major oil fields off the coast of Newfoundland to London-based Ithaca Energy PLC (IACAF). The transaction, valued at up to $1.55 billion, significantly scales back Suncor’s presence in the region after decades of operation. The deal includes Suncor’s 48% interest in Terra Nova, 40% in White Rose, and 38.6% in West White Rose, with an initial payment of $1.2 billion and a potential additional $350 million contingent on future oil prices.

The move aligns with Suncor’s strategy to focus on its core assets in northern Alberta, where it holds a dominant position. ‘We are aligning our portfolio around our competitive advantages and the strengths of our unparalleled, physically integrated business,’ stated Rich Kruger, Suncor’s CEO. The company will retain its interests in the Hibernia and Hebron fields.

For Ithaca Energy, this acquisition marks its first international expansion, adding long-life reserves in a region similar to the U.K. Continental Shelf. Executive chairman Yaniv Friedman highlighted the strategic fit, noting the similarities in the operating environment. The deal is expected to close in early 2027.

Separately, Suncor also revealed plans to increase its share repurchase budget to $750 million per month, up from $500 million, reflecting its continued focus on returning value to shareholders.