Suncor Energy has agreed to sell its interests in three offshore oil projects in Newfoundland and Labrador to London-based Ithaca Energy for C$1.2 billion in cash.

The deal covers Suncor’s stakes in the Terra Nova, White Rose and West White Rose offshore developments. Ithaca will also make a potential additional payment of up to C$350 million, depending on future oil prices.

The transaction represents Ithaca Energy’s first international expansion and marks its entry into Canada’s offshore energy sector.

Ithaca will assume future investment commitments and liabilities associated with the assets, including a regulatory program for Terra Nova and future abandonment and lease obligations.

For Suncor, the sale is part of its strategy to focus its portfolio while increasing returns to shareholders. The company plans to raise its monthly share-repurchase program from C$500 million to C$750 million beginning in October.

Suncor will retain its interests in the Hebron and Hibernia offshore projects, maintaining a presence in Newfoundland and Labrador’s offshore oil industry.

The transaction is expected to close in early 2027, subject to customary conditions and regulatory approvals.

The deal highlights continuing changes in Canada’s energy sector as major producers reassess offshore assets, capital requirements and long-term investment priorities.