Ithaca Energy, a UK-based oil and gas operator and producer, has entered into a contract worth $860 million to purchase Suncor Energy's oil assets on the east coast of Canada. This deal is recognized as the company's first step in expanding its international operations and entering new markets.
Deal Details
Ithaca Energy has announced that this purchase includes Suncor's conventional oil assets on the east coast of Canada, and there is also the potential to receive an additional $250 million based on oil prices. This amount will be conditional on specific terms and will be paid starting July 1, 2026, based on Brent oil prices.
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Ithaca Energy plans to finance this deal through existing liquidity, the use of credit facilities, and domestic financing. This move will contribute to the diversification and richness of this operator's asset portfolio and includes a 48% operational interest in the Terra Nova oil field, a 40% non-operational interest in the White Rose Existing Lands, and a 38.6% non-operational interest in the White Rose Growth Lands.
Strategic Implications
The Terra Nova oil field, located 350 kilometers southeast of St. John's, has been in production since 2002 and continues to produce with a new project aimed at extending the life of the facilities. Additionally, the White Rose field, managed by Cenovus Energy, is considered a significant opportunity for Ithaca due to its high margins and anticipated substantial production growth in the near future.
This deal allows Ithaca Energy to create greater scale and diversity in its two key operational centers, with average production expected to reach 30,000 barrels of oil equivalent per day (boe/d) between 2027 and 2031. Furthermore, the company's maximum production is projected to reach 35-40,000 boe/d by 2029.
With this acquisition, Ithaca Energy will be recognized as the fifth-largest operator on the Canadian coasts in terms of production, and this strong position will help it continue to pursue inorganic growth in North America by focusing on adding high-quality barrels.
The completion of this deal is targeted for the first half of 2027 and is subject to meeting customary closing conditions, including legal and governmental approvals in Canada.
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