Suncor Energy has agreed to sell its interests in the Terra Nova, White Rose and West White Rose offshore oil projects to London-based Ithaca Energy for C$1.2 billion in cash, or approximately US$860 million. The deal also includes potential additional payments of up to C$350 million, depending on future oil prices.
The sale is part of Suncor’s plan to streamline its portfolio and focus on its core oil sands operations. Ithaca will assume all future liabilities, including estimated abandonment and lease obligations of C$1.4 billion. Suncor will retain its interests in the Hebron and Hibernia offshore projects.
Separately, Suncor is increasing its monthly share repurchase program from C$500 million to C$750 million.