Energy: Bogotá
Key Facts
—Deal. Gran Tierra Energy, a Calgary-based Canadian oil company, has agreed to sell its Colombia and Ecuador business to France’s Maurel & Prom for total consideration of about US$1.33 billion.
—Assets. The divested operations produced roughly 29,000 barrels of oil per day in the first half of 2026 and hold about 144 million barrels of proved-plus-probable reserves across some 1.4 million gross acres.
—Refocus. Gran Tierra says it will use proceeds for a share buyback and to fund its remaining programs in Canada and Azerbaijan, exiting its long-standing South American base.
—Buyer. Maurel & Prom, listed in Paris and majority-owned by Indonesia’s state energy group Pertamina, aims to lift output from the assets toward 40,000 bpd by 2029-2030.
—Timing. The companies target completion around December 31, 2026, subject to a Gran Tierra shareholder vote, creditor agreement and regulatory approvals in Colombia and Ecuador.
Gran Tierra Energy will sell its Colombia and Ecuador oil business to Maurel & Prom for about US$1.33 billion, pivoting the Canadian producer toward Canada and Azerbaijan in one of the year’s larger Andean energy deals.
A US$1.33 Billion Exit From the Andes
Gran Tierra Energy, headquartered in Calgary, said on August 5 that it had agreed to sell its Colombia and Ecuador business to Maurel & Prom for total consideration of about US$1.33 billion. The deal covers the assets that have long formed the core of the company’s production.
The divested operations produced about 29,000 barrels of oil per day on a working-interest basis in the first half of 2026, hold roughly 144 million barrels of proved-plus-probable reserves and span some 1.4 million gross acres, according to Gran Tierra.
The transaction has an economic effective date of March 31, 2026, and is targeted to close on or about December 31, 2026. It requires approval from Gran Tierra shareholders and creditors, along with regulatory clearances in Colombia and Ecuador.
Why Gran Tierra Is Refocusing on Canada and Azerbaijan
Gran Tierra framed the sale as a way to “reposition the company for fully financed growth.” It said a portion of the net cash proceeds would fund a share repurchase, with the balance retained to support its programs in Canada and Azerbaijan and for general corporate purposes.
The move marks a strategic pivot for a producer whose identity has been closely tied to Colombia and Ecuador for years. Concentrating on Canadian assets and its Azerbaijan interests shifts the company’s center of gravity away from the Andes.
For investors, the promised buyback and debt reduction are central to the pitch. Maurel & Prom said it would assume about US$582 million of Gran Tierra debt as of June 30 and a US$350 million prepayment facility as part of the arrangement.
Who Is Maurel & Prom?
Maurel & Prom is an upstream oil and gas operator listed on Euronext Paris, with a market value of roughly US$1.9 billion. It is majority-owned, at about 72.65%, by the international upstream arm of Pertamina, Indonesia’s state-owned energy company.
The acquisition expands the French-listed firm’s footprint into Latin America. Maurel & Prom said it aimed to raise production from the acquired assets toward 40,000 bpd by 2029-2030, betting on further development of Colombian and Ecuadorean fields.
For Colombia and Ecuador, the change is one of ownership rather than output: the fields continue operating, but under a new operator with different financial backing and growth plans.
Colombia’s Broader Energy Backdrop
The sale lands as Colombia recalibrates its energy strategy. The government has continued to advance its national hydrogen roadmap, which envisions scaling up production hubs later this decade and export-ready, low-emission hydrogen by 2031.
At the same time, the oil-and-gas association ACP has warned of a fuel-supply “time bomb,” with Colombia’s natural-gas deficit projected to reach a significant share of demand in 2026 as mature fields decline and imports rise.
Against that backdrop, transactions like the Gran Tierra sale underscore how international capital is reshaping who develops Colombia’s hydrocarbons, even as national policy tilts toward an eventual energy transition.
What the Deal Means for Investors and the Region
The agreement ranks among the larger upstream deals in the Andean region this year, signaling continued appetite for producing oil assets even amid energy-transition pressures. It also gives Pertamina-backed Maurel & Prom a new production base far from its existing operations.
For Gran Tierra shareholders, the outcome now hinges on the promised return of capital and a cleaner balance sheet. The company’s future results will be driven by Canadian and Azerbaijani operations rather than the Colombian fields that defined it.
Completion is not guaranteed. The deal must clear shareholder and creditor votes and win regulatory approval in two countries, a process the companies expect to run through year-end. Regulatory review in Bogotá and Quito will weigh the transfer against national energy priorities, including employment, royalties and investment plans.
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Frequently Asked Questions
What is Gran Tierra Energy selling?
Gran Tierra Energy, a Calgary-based Canadian oil company, has agreed to sell its entire Colombia and Ecuador business to Maurel & Prom for total consideration of about US$1.33 billion, including assets producing roughly 29,000 barrels per day.
Why is Gran Tierra leaving Colombia and Ecuador?
The company says it will use proceeds to fund a share buyback and concentrate on its programs in Canada and Azerbaijan, a strategy it calls repositioning the business for “fully financed growth.”
When will the sale close?
Gran Tierra and Maurel & Prom are targeting completion on or about December 31, 2026, subject to approval by Gran Tierra shareholders and creditors and regulatory clearances in Colombia and Ecuador.
Sources
Gran Tierra Energy · The Globe and Mail · Seeking Alpha · energynews.pro
Connected Coverage
More from The Rio Times on Colombia’s energy sector, oil deals and the looming gas deficit.
Sources: Gran Tierra Energy, The Globe and Mail, Seeking Alpha, energynews.pro, RTTNews, Colombia Ministry of Mines and Energy, The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error