Private equity giant Carlyle Group is exploring a $1.5bn sale of SierraCol, Colombia’s largest independent oil producer, as it looks to monetise another energy investment, according to a report by Reuters citing unnamed sources familiar with the matter.
Carlyle established SierraCol in 2020 after acquiring assets from Occidental Petroleum. Today, the company produces 45,000 barrels of oil equivalent per day, making it a leading independent player in Colombia’s oil sector.
The PE firm has a track record of building and exiting oil and gas investments, having previously sold Neptune Energy in the North Sea and Assala Energy in Gabon. Carlyle typically holds energy assets for about five years, focusing on reserves expansion, operational efficiencies, and positioning for future growth before seeking an exit.
SierraCol generated $172m in free cash flow in the 12 months ending September 2024 and reported net debt of $511m last year, according to a company presentation. Given the company’s strong cash flow and market position, Carlyle is expected to attract interest from both private equity firms and strategic energy buyers.
The decision to move forward with a potential sale of SierraCol comes as Carlyle’s $945m deal to acquire assets from Energean in Italy, Egypt, and Croatia has been cancelled due to regulatory delays.
