Private equity firm Carlyle has agreed to divest its Colombian oil producer SierraCol to Prime Infrastructure Capital, the infrastructure unit associated with Filipino businessman Enrique K. Razon Jr., for an undisclosed sum.
Carlyle established SierraCol in 2020 after purchasing assets from Occidental Petroleum. Since then, the firm says it has channelled roughly $1 billion into SierraCol, primarily to support the company’s existing asset base, steady net production at roughly 45,000 barrels of oil equivalent per day, and cut operational emissions.
SierraCol’s gross production sits at about 77,000 barrels of oil equivalent per day, which represents approximately 10% of Colombia’s overall output. The company reported $205 million in free cash flow for the 12 months to October 2025 and carried net debt of $618 million, according to figures posted on SierraCol’s own website.
Prior to the transaction, Carlyle had been seeking a higher valuation for the Colombian business; unnamed sources in 2025 indicated the private equity group had sought roughly $1.5 billion for SierraCol.
The sale comes amid broader activity by Carlyle in the oil and gas sector. In January, the firm reached a non-binding, initial agreement to acquire most international assets from the sanctioned Russian company Lukoil and to combine its European refining platform Moeve with the downstream operations of Portuguese energy company Galp.
Commenting on the firm’s approach to energy deals, Bob Maguire, co-head of Carlyle International Energy Partners (CIEP), said: "This is where our track record is strong and I expect to continue that. We have a clear playbook for executing complex carve-outs and strengthening these businesses." Maguire added that CIEP did not hold fixed views on the split of future investment between downstream and upstream opportunities.
CIEP managing director Parminder Singh said it has been difficult in the current market to secure assets from larger oil companies, which have been prioritising the replenishment of their own oil and gas reserves while cutting back on low-carbon projects.
Prime Infrastructure Capital operates across energy, waste and water infrastructure. Financial details of the SierraCol purchase were not disclosed.
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