Suncor Energy sells stake in East Coast oil fields to U.K. producer

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesEnergyOil & GasSuncor Energy sells stake in East Coast oil fields to U.K. producerThe deal will position Ithaca as the fifth-largest operator in Canada’s offshore drilling sectorAuthor of the article:Last updated 0 minutes ago The assets include a 48 per cent interest in the Terra Nova field, a 40 per cent share of the White Rose deposit and a 38.6 per cent stake in West White Rose. Photo by Handout/Suncor EnergyNorth Sea oil and gas producer Ithaca Energy PLC agreed to buy assets in Canada from Suncor Energy Inc., marking the United Kingdom company’s first international acquisition.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountIthaca will pay US$860 million in cash for the shallow-water assets off Newfoundland and Labrador, and as much as US$250 million in contingent payments tied to future oil prices, it said Monday.This advertisement has not loaded yet, but your article continues below.A number of British North Sea oil producers have been expanding abroad to offset the impact of declining output, restrictions on exploration and high taxes at home.“This acquisition marks the next era of growth for Ithaca Energy,” executive chairman Yaniv Friedman said in a statement. “The transaction delivers on our clear stated growth strategy as we seek to diversify and grow our production.”The deal will position Ithaca as the fifth-largest operator in Canada’s offshore and create a “platform for further inorganic growth in North America,” it said. The company expects the transaction to complete in the first half of next year.The assets include a 48 per cent interest in the Terra Nova field, a 40 per cent share of the White Rose deposit and a 38.6 per cent stake in West White Rose. Ithaca expects to finance the deal through cash in hand, its borrowing base facility and in-country financing.The acquisition “should be accretive pretty much straight away,” analysts at Panmure Liberum said in a note. It “gives Ithaca a foothold in North America where investment in oil and gas is still welcome, and fiscal regimes are far more attractive.”Ithaca rose as much as 3.1 per cent at the open in London, and traded up 2.8 per cent as of 8:54 a.m. local time.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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