Global investment firm Carlyle announced that it has agreed to sell SierraCol Energy Limited, Colombia’s largest independent oil and gas exploration and production company, to Prime Infrastructure Capital. The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2026. Financial terms of the deal were not disclosed.
Carlyle originally invested in SierraCol in 2020 through Carlyle International Energy Partners, a private equity fund focused on global energy investments. The firm partnered with SierraCol’s management team to transform the business into a major standalone energy producer in Colombia. Today, the company is responsible for approximately 10% of the country’s total oil production.
During Carlyle’s ownership period, SierraCol invested nearly $1 billion in capital expenditure, adding more than 100 million barrels of oil equivalent in additional reserves while achieving a reserves replacement ratio of roughly 135%. The company also completed several strategic acquisitions, including CEPSA’s Colombian assets and the buyout of Repsol’s minority stake in SierraCol Arauca.
SierraCol has also focused on sustainability and operational improvements. Since 2020, the company has reduced Scope 1 and 2 carbon emissions by about 60% and methane emissions by roughly 45% since 2023. The company has also invested more than $45 million in local communities since 2021.
Prime Infrastructure Capital, the buyer, is part of the infrastructure investment platform backed by Filipino businessman Enrique K. Razon Jr. SierraCol will continue operating as a major independent energy producer with a strong presence in Colombia’s most prolific oil basins.
Advisors on the transaction included BofA Securities, which served as lead financial advisor to Carlyle, while Latham & Watkins LLP acted as legal counsel.
SierraCol’s asset portfolio includes major fields such as Caño Limón and La Cira Infantas, producing high-quality crude connected to key infrastructure and markets. The company currently reports approximately 77,000 barrels of oil equivalent per day in production and holds 2P reserves of about 129 million barrels.
KEY QUOTES
“We are grateful for Carlyle’s partnership in positioning SierraCol for long-term success and proud of what we have accomplished together. Over the past five years, we have transformed SierraCol into Colombia’s largest independent oil and gas producer starting from a carve-out of Occidental’s assets. During this time, we executed significant investments, expanded the asset base, and successfully accessed the capital markets twice – establishing a strong platform for the future. We look forward to working with Prime Infrastructure Capital as we enter our next phase of growth.”
Tony Hayward, Executive Chairman Of SierraCol
“SierraCol reflects our conviction that investing in high-quality assets can drive long-term value creation, while playing a key role in Colombia’s energy sector. Carlyle supported SierraCol in building a fully standalone Colombian energy company and empowered the business to become a responsible operator, leading employer, and trusted in-country partner to Ecopetrol that will continue to contribute to the longevity of Colombia’s energy sector.”
“Carlyle’s investment in SierraCol represents a excellent case study on how we partner with management teams to deliver operational excellence through continual asset investment and a focus on sustainability, underpinning long-term value for our investors. Together with Tony, CEO Bernardo Ortiz and the wider management team, we are delighted to have scaled these operations into a leading Colombian energy champion, well positioned for continued success under its new ownership.”
Bob Maguire, Co-Head Of Carlyle International Energy Partners; Parminder Singh, Managing Director Of Carlyle International Energy Partners
