Ecopetrol SA, the state-owned oil company of Colombia, is exploring the possibility of purchasing SierraCol Energy Ltd., the largest independent oil producer in the country, from the Carlyle Group. This move aims to increase the company’s reserves and output, as indicated by its senior executives during a recent interview.
According to a report from Reuters last month, Carlyle Group is looking to sell SierraCol for $1.5 billion. The assets were acquired from Occidental Petroleum Corp. in 2020 for approximately $825 million.
Rafael Guzman, Ecopetrol’s vice president of hydrocarbons, stated in an interview at the company’s Bogotá headquarters, alongside CEO Ricardo Roa, “We have been invited to participate in the process and are currently evaluating this option.” He further noted, “We have not yet made a decision regarding a potential offer,” without disclosing any specific figures.
A spokesperson for Carlyle Group declined to provide comments, and SierraCol also refrained from making any statements.
As Colombia faces declining oil and natural gas reserves and with President Gustavo Petro’s refusal to issue new exploration licenses, Ecopetrol is concentrating on contracts established prior to the environmentalist leader’s administration, which began in 2022. In February, the company announced it had fully acquired the CPO-09 block in the eastern plains, a move that contributed to an increase in reserves.
Roa mentioned, “We will gradually pursue opportunities to acquire assets and expand exploration and reserves as they arise.” Ecopetrol projects its production to range between 740,000 and 750,000 barrels of oil equivalent per day this year.
Last year, Ecopetrol’s natural gas reserves were equivalent to 6.7 years, a decrease from 7.2 years in 2023, while its oil reserves increased slightly from 7.7 years to 7.8 years during the same timeframe.
SOURCE: Bloomberg