Ithaca enters offshore Canada

Ithaca Energy has agreed to acquire multiple oil-producing interests offshore Newfoundland and Labrador from Suncor Energy.

The upfront cash consideration is $860 million, plus an additional contingent payment of up $250 million, based on future oil prices.

The package comprises a 48% operated stake in the Terra Nova Field; and a 40% interest in the White Rose existing lands, 38.6% in the White Rose growth lands, including the West White Rose extension, all operated by Cenovus Energy. Both sets of fields are in the offshore Jeanne d’Arc Basin.

Terra Nova produces via an FPSO that recently underwent life-extension upgrades at the Harland and Wolff shipyard in Belfast. The platform-based West White Rose development is due to start operations in the current quarter.

Ithaca will assume investment commitments and all future liabilities associated with the fields and facilities (including a $500-million regulatory well compliance program starting in 2027 at Terra Nova), and the total estimated abandonment and lease liabilities of $1.4 billion.

Ithaca’s Executive Chairman Yaniv Friedman said: 

“This acquisition marks the next era of growth for Ithaca Energy as we make our inaugural international acquisition in offshore East Coast Canada.

The transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production and resource base and replicate our success in the United Kingdom Continental Shelf [UKCS]) through disciplined international expansion in regions we believe we can create long-term value… 

It adds long-life, low-decline barrels in an offshore operating environment similar to the UKCS, which will materially enhance our medium-term production outlook and create a platform for further organic growth and consolidation…”

Ithaca considers the Newfoundland and Labrador’s fiscal and regulatory regime “attractive, with pragmatic federal and provincial government, providing strong support for further investment and development in the basin.”

These are shallow-water, long-life conventional oil assets located in a well- developed, low-complexity operating environment, the company added, with basin similarities suited Io Ithaca’s operating experience, including FPSOs.

Long-life reserves and growth opportunities

The company estimates the remaining life of the 2P reserves at ~17 years, with 2P production set to rise to 35-40 kboe/d by 2029, driven by near-term production growth from West White Rose.

Ithaca would gain 2P reserves of 103 MMbboe, with further remaining resources of about 200 MMboe, providing options for further investments, including infill drilling, near-field step-outs and exploration.

It would also become the fifth largest operator offshore Canada in terms of production, providing a platform for further inorganic growth in North America, the company said.

Both parties aim to close the transaction in the first half of 2027, subject to satisfaction of customary closing conditions, including regulatory and government approvals in Canada.

Suncor reported that it will retain its interests in the Hebron and Hibernia offshore projects in the same basin, operated respectively by ExxonMobil and Hibernia Management and Development Co.

New acreage nomination process launched

In other local news, the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER) has issued two 2026 Calls for Nominations:

1. A Call for Nominations for Parcels in the Jeanne d’Arc region; and
2. A new Cumulative Parcels Call for Nominations in Labrador South, Eastern Newfoundland and South Eastern Newfoundland regions.

The new cumulative parcels process, C-NLOER said, “offers previously unawarded or recently relinquished parcels for nomination in order to improve transparency and flexibility, provide insight into industry and stakeholder interests and refocus the volume of Call for Bids acreage.”

Following a review of any submissions that follow, along with previous feedback and the C-NLOER’s technical analysis, the regulator will decide whether Calls for Bids should proceed in these regions. 

If approved, and subject to ministerial ratification, Calls for Bids would be announced in early 2027, closing in November 2027, with licenses issued to successful bidders in early 2028.