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.
Ryan Lance, Chairman of the Board of Directors of ConocoPhillips, said on Monday that he expects the minimum oil prices to rise to about $70 per barrel, and he believes that the price of US West Texas Intermediate crude at the middle of the economic cycle will range between $65 and $70 per barrel.
He added, during the Energy Intelligence conference held in London, that US oil production may exceed a range between 14 million and 14.5 million barrels per day if oil prices remain near their current levels.
Brent crude oil is currently trading above $100 per barrel, even with news of the return of supplies from the Gulf through the Strait of Hormuz and other alternative routes to the markets.
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.
