Razon firm to acquire major Colombian oil producer

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MANILA, Philippines — Prime Infrastructure Capital, the energy investment arm of tycoon Enrique Razon Jr., has agreed to acquire Colombia's largest independent oil and gas exploration and production company.

American investment firm Carlyle announced March 11, Wednesday, that it had signed an agreement to sell SierraCol Energy to Razon's firm, with the transaction expected to close in the first quarter of 2026 subject to regulatory approvals.

The deal places Razon’s Prime Infra in global upstream oil production, expanding beyond its existing energy investments in gas and power infrastructure.

Other details of the agreement have not been disclosed.

What is Sierra Col?

Carlyle said SierraCol currently accounts for about 10% of Colombia's gross oil production.

The company was built into a standalone Colombian energy firm after Carlyle invested in the business in 2020 through its Carlyle International Energy Partners fund.

During Carlyle's ownership, SierraCol invested nearly $1 billion in capital expenditures, adding more than 100 million barrels of oil equivalent in reserves.

Tony Hayward, executive chairman of SierraCol, said the company had expanded its asset base and strengthened its position in Colombia's energy sector.

"We are grateful for Carlyle's partnership in positioning SierraCol for long-term success and proud of what we have accomplished together," Hayward said in the announcement. "We look forward to working with Prime Infrastructure Capital as we enter our next phase of growth."

Carlyle said SierraCol also reduced its operational emissions while investing in local communities.

According to the firm, the company cut Scope 1 and 2 carbon emissions by 60% since 2020 and reduced methane emissions by 45% since 2023.

It also invested more than $45 million in community programs since 2021.

Razon's expanding energy portfolio

Prime Infra, initially positioned as focusing on water, sustainable energy and waste management, has been reshaping its energy investments as demand for energy security rises.

In November last year, it made its largest move by acquiring 60% controlling stake in First Gen's gas-fired power assets for P50 billion.

Razon is also selling 33% of Prime Infra's stake in hydropower projects to Lopez-led First Gen for P61.88 billion.

Through the SierraCol deal, Razon—whose businesses span ports, energy and infrastructure—is planting Prime Infra in upstream oil production at a time when global energy markets are under pressure from supply disruptions.

Oil markets have recently seen sharp price swings as conflict in the Middle East threatens shipping routes and supply chains.

Energy officials in the Philippines have warned that global market movements could drive significant fuel price increases domestically.

The Philippines imports most of its oil requirements, making domestic fuel prices sensitive to global market movements.