Delek Group Acquires Canadian Offshore Oil Assets for $860 Million

Delek Group, owned by billionaire Yitzhak Tshuva and managed by Idan Wells, has announced a significant international energy deal. Its subsidiary Ithaca, co-owned with ENI, has agreed to purchase a portfolio of producing offshore oil assets in Eastern Canada from Canadian energy company Suncor Energy. This marks Ithaca's first international acquisition outside the British North Sea and signifies a new phase in its growth and diversification strategy.

The acquisition grants Ithaca a substantial presence in Canada, in an area with geological and operational similarities to the North Sea, where Ithaca has extensive experience. Ithaca will pay $860 million in cash upon closing, subject to customary adjustments. An additional contingent payment of up to $250 million may be paid based on oil prices over 27 months. Ithaca plans to finance the deal through its existing reserve-based lending facility and local Canadian financing.

The transaction is expected to close in the first half of 2027, with an effective date of July 1, 2026, pending regulatory approvals. The acquired assets include operational stakes in Terra Nova (48%), White Rose Existing Lands (40%), and White Rose Growth Lands (38.6%), including the West White Rose project, with production anticipated to begin in Q4 2026. The deal is projected to add approximately 103 million barrels of proven and probable P2 reserves, at an average cost of about $8 per barrel, along with an additional 180 million barrels of resources with significant development potential.

Production from these assets is expected to increase Ithaca's daily output by about 30,000 barrels of oil equivalent per day between 2027 and 2031, potentially reaching 35-40,000 barrels per day in 2029. Ithaca anticipates updating its medium-term production forecast to around 140-150,000 barrels of oil equivalent per day. The acquired assets generated an adjusted EBITDAX of approximately $235 million in the 12 months ending June 2026, a period of relatively lower production before recent upgrades and the anticipated West White Rose output.

Idan Wells stated that the deal is a significant milestone for Ithaca, opening a new chapter of growth outside the North Sea and providing a high-quality portfolio at an opportunistic price. He added that for Delek Group, this acquisition deepens its involvement in the Canadian energy market, complementing its existing InPlay Oil operations in Alberta. Ithaca recently joined the FTSE 100 index, reflecting its increased scale and market position, and has received positive recommendations from international investment firms.