Suncor Sells Offshore Assets While Cenovus Expands in Alberta
Suncor Energy Inc. is selling its offshore assets in Newfoundland and Labrador to focus on its oilsands holdings in Alberta, while Cenovus Energy Inc. is expanding its footprint in northern Alberta through a major acquisition. Suncor announced that U.K.-based Ithaca Energy PLC will purchase its interests in the Terra Nova, White Rose, and West White Rose developments for $1.2 billion in cash, with an additional contingent payment of up to $350 million based on future oil prices. The sale, expected to close in early 2027, will allow Suncor to concentrate on its oilsands projects, such as Firebag and Lewis, which use steam-assisted gravity drainage (SAGD) technology.
Suncor CEO Rich Kruger stated that the transaction aligns the company’s portfolio with its competitive advantages in the oilsands. The company also plans to increase its share repurchases to $750 million per month starting in October. Analysts, such as Robert Mann from Desjardins Securities, view the sale as a strategic move that enhances Suncor’s flexibility to accelerate in situ development opportunities.
Meanwhile, Cenovus Energy Inc. is acquiring Athabasca Oil Corp. in a $5.7-billion cash-and-stock deal. Athabasca currently produces 40,000 barrels per day of oilsands output, but Cenovus aims to increase this to 115,000 barrels per day by 2032. Cenovus CEO Jon McKenzie described the acquisition as one of the most significant organic growth opportunities in the Canadian oilsands today. The deal includes the option for Athabasca shareholders to receive either $12 in cash or 0.264 of a Cenovus common share per share held.
McKenzie also highlighted positive steps by the federal and Alberta governments to boost the sector’s competitiveness, including immediate tax deductions for investments and forthcoming royalty incentives. These measures are expected to accelerate growth in the Athabasca Basin and draw more capital into the region. Analysts like Mann view the acquisition as strategically compelling given the scarcity of top-tier thermal inventory and the favorable backdrop for oilsands development.