Financial terms of the transaction were not disclosed. However, industry sources previously indicated that Carlyle had been seeking a valuation of about $1.5 billion for the Colombia-focused producer as it explored an exit from the asset.

Background of the transaction

Carlyle established SierraCol in 2020 after acquiring onshore oil assets in Colombia from Occidental Petroleum. Since then, the private equity firm has invested roughly $1 billion in developing the business, focusing on stabilizing production and improving operational efficiency.

Those investments helped SierraCol maintain net production of about 45,000 barrels of oil equivalent per day, while reducing emissions across its operations. The company’s gross output stands at around 77,000 barrels per day, accounting for roughly 10% of Colombia’s national oil production.

SierraCol reported approximately $205 million in free cash flow in the 12 months to October 2025 and carried net debt of about $618 million, according to company data.

Strategic move for Prime Infrastructure

For Prime Infrastructure Capital, the acquisition represents a significant expansion into upstream oil and gas assets. The company operates across energy, water and waste infrastructure, and has been actively investing to build a diversified energy portfolio.

The group is controlled by Razon, a prominent Philippine businessman whose interests span ports, infrastructure and energy investments across Asia and other regions.

Carlyle’s energy investment strategy

The deal aligns with Carlyle’s long-standing strategy of acquiring, developing and eventually divesting energy assets through its global investment platform. SierraCol was developed under the firm’s Carlyle International Energy Partners (CIEP) fund, which focuses on energy opportunities outside North America.

Executives from Carlyle’s energy division noted that the firm specializes in complex asset carve-outs from larger energy companies and seeks to enhance their operational performance before exiting investments.

Industry analysts say the transaction also reflects a broader trend in the oil and gas sector, where private equity firms are monetizing mature assets while energy investors seek production opportunities amid continued global demand for hydrocarbons.

Outlook

The acquisition is expected to strengthen Prime Infrastructure’s presence in the global energy market while providing Carlyle with a successful exit from one of Latin America’s largest independent oil producers.

With SierraCol responsible for a significant share of Colombia’s oil output, the change in ownership could also have implications for the country’s upstream sector and foreign investment landscape.

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