Prime Infrastructure Acquires SierraCol Energy from Carlyle

Prime Infrastructure, a Philippines-based infrastructure investor backed by billionaire Enrique K. Razon Jr., has entered into an agreement to acquire SierraCol Energy from global investment firm Carlyle. The transaction marks a significant cross-border investment in the Latin American energy sector, transferring ownership of Colombia's largest independent oil and gas exploration and production company.

While the official financial terms of the agreement were not disclosed, market sources indicate that Carlyle had previously sought approximately USD 1.5 billion for the asset. The acquisition represents the first overseas energy asset for Prime Infrastructure, strategically expanding its upstream portfolio beyond the Philippines and capitalizing on stable cash-flowing hydrocarbons in emerging markets. This international expansion complements the company's robust domestic energy strategy, which includes recent investments in the First Gen gas power plant and LNG terminal, as well as large-scale renewable initiatives like the 600 MW Wawa and 1,400 MW Ahunan pumped storage hydroelectric projects, positioning the firm to support both immediate energy needs and long-term transition goals.

Created by Carlyle in 2020, SierraCol Energy has grown into a highly productive operator, holding key assets such as the Caño Limón and La Cira Infantas fields in the Llanos, Middle Magdalena, and Putumayo basins. The company currently produces approximately 77,000 barrels of oil equivalent per day, accounting for roughly 10% of Colombia's total national output. The transaction is expected to close in the coming weeks subject to customary regulatory approvals, with the target company's current leadership team remaining in place to drive continued operational development and asset portfolio growth.

According to information compiled by TTR Data, a comprehensive consortium of international advisors facilitated the transaction. Prime Infrastructure was advised financially by J.P. Morgan. Legal counsel for the buyer was led by a global Milbank team headed by Hong Kong-based partners James Grandolfo and Andrew Whan, alongside partners John Bona, Francisco Nunez, Ross Shepard, Edward Lemanowicz, Mike Shah, Alan Rafferty, and Andrew Nuthall, supported by special counsels Jameson Frazier and Shaul Steinberg, and senior associate Cesareo Singzon. Further legal support for Prime Infrastructure included Lenz & Staehelin on Swiss law, with a team comprising Simone Ehrsam, Tino Gaberthüel, Marius Meier, and Arnold Romero, and Brigard Urrutia on Colombian law. The Brigard Urrutia team was led by partners Ángela García Páez, Fernando Alfredo Castillo, Nicolás Cardona, and Sergio Michelsen Jaramillo, supported by director Juan Carlos Padilla, senior associate María Camila Osorio, and associates Andrés Varela Jaramillo, Gonzalo Orrego Vélez, Isabel Arango Trujillo, and Manuela Rivas. The seller, Carlyle, alongside Flamingo Midco, received financial advisory services from BofA Securities, with legal representation provided by Latham & Watkins as US counsel and Posse Herrera Ruiz as Colombian counsel.