Suncor sells offshore assets to Ithaca for $1.2 billion, investor sentiment in the euro zone declines and Qatari gas shipments continue.

The Canadian company Suncor Energy announced that it has agreed to sell its shares in three offshore oil assets to Ithaca Energy, which is based in London, for 1.2 billion Canadian dollars (841.69 million US dollars), to be paid in cash and upfront.

The deal includes Suncor's 48 percent stake in the Terra Nova field, a 40 percent stake in the White Rose field, and a 38.6 percent stake in the West White Rose project. It also includes an additional conditional payment of up to 350 million Canadian dollars linked to future oil prices.

“Suncor” stated that “Ithaca” will also assume investment obligations and all future obligations associated with these assets, including a well regulatory compliance program worth 500 million Canadian dollars starting in the “Terra Nova” field in 2027, in addition to estimated obligations related to the termination of operations (abandoning assets) and lease contracts with a total value of 1.4 billion Canadian dollars.

Ithaca said that this acquisition represents its first international deal, and will enable it to consolidate its presence in offshore exploration areas in eastern Canada.

Ithaca also expects that the deal, once completed, will enhance its financial indicators, including adjusted earnings before interest, taxes, depreciation, amortization, exploration costs, free cash flow, and cash dividends per share.

Rich Krueger, CEO of Suncor, said: “This transaction further focuses our efforts on opportunities that achieve maximum long-term value for shareholders.”

Suncor will retain its shares in the Hebron and Hibernia offshore projects.

In a separate context, Suncor announced that it had increased the value of its share repurchase - within its regular share repurchase program - from 500 million Canadian dollars to 750 million Canadian dollars per month, starting in October.

The two companies stated that the deal is expected to be completed in early 2027.

Investor morale declined in the euro zone this October, with lower expectations for lowering interest rates, which raised doubts about the possibility of economic improvement, according to the Sentix survey, issued on Monday.

The Sentix index for the euro zone fell to 2.7 points in October, from 5.1 points last September, compared to analysts’ expectations of 5.0 points.

This comes after the index recorded its highest level in more than four years in September, according to Reuters.

According to “Sentix”, investors’ assessment of the current conditions remained stable, while the decline in the index was attributed to a “noticeable setback” in investors’ expectations.

The current situation assessment index stabilized at -3.3 points in October, while economic expectations fell by a full 5 points on a monthly basis to 8.8 points.

The Sentix survey confirmed that “in Germany, by contrast, hopes for an emerging economic improvement still exist, but here we also see a decline in expectations that should not be ignored.”

In Germany, the main Sentix index fell to -3.6 points, from -2.8 points, while the expectations index fell to 8.0 points, from 12.3 points in the previous month.

On the other hand, the index assessing the current situation in Germany rose for the fourth month in a row, recording its highest level since May 2023 at -14.5 points.

The survey included 1,030 investors, including 218 institutional investors, and was conducted during the period from October 1 to 3.

More LNG cargoes loaded from Ras Laffan reappeared outside the Strait of Hormuz over the weekend, after transiting the waterway; Which reinforces the recent increase in the movement of Qatari liquefied natural gas shipments despite the ongoing security risks associated with the Iran war.

Four liquefied natural gas tankers carrying Qatari cargo appeared again outside the Strait of Hormuz between October 2 and 3, according to ship tracking data from Kpler and LSEG.

Three of these tankers - “Bu Samra”, “Al Qattara” and “Al Sadd” - are linked to Qatar Energy Company. Tracking data for the “Al Qattara” tanker currently indicates that it is headed to Zhejiang, China, while the “Al Sadd” tanker unloaded its cargo at the “Daheg” terminal in India on October 3.

As for the fourth tanker, Al Kharsaa, it is managed by Sea Peak Maritime, an independent owner and operator of gas tankers.

The four tankers were last seen inside the Strait of Hormuz between September 18 and 27. Many ships crossing the strait carry out what is called a “dark transit” by turning off their Automatic Identification System (AIS) transponders to avoid detection.

Meanwhile, another LNG tanker, the Al-Marouna - also operated by Sea Peak Maritime - appeared sailing unloaded within the Strait of Hormuz off the coast of Qatar on October 2, after having previously been tracked outside the waterway.