Prime Infrastructure Capital Inc. (Prime Infra), the infrastructure arm of billionaire Enrique K. Razon Jr., agreed to acquire 100 percent of Colombian oil producer SierraCol Energy Ltd. from the Carlyle Group.

In a statement on Thursday, March 12, Prime Infra said the transaction transfers full ownership from the United States (US) private equity firm to the Razon-led company.

Razon’s latest acquisition is Prime Infra’s latest effort to diversify beyond its domestic energy and water holdings and expand the company’s footprint into the Latin American upstream sector.

While the companies did not disclose the purchase price, Carlyle reportedly sought an enterprise value of approximately ₱75 billion ($1.5 billion) when it initially backed the Colombian producer in 2020.

The acquisition of SierraCol, Colombia’s largest independent oil producer, gives Prime Infra control over roughly 10 percent of the country’s total crude output. The producer holds interests in the Caño Limón and La Cira Infantas fields, which generate high-quality crude and are connected to established export infrastructure and regional markets.

SierraCol reported gross operated and co-operated production of 77,000 barrels of oil equivalent per day and maintains 129 million barrels of reserves, representing a 10-year reserve life. Its operations span 14 producing blocks, with another eight currently in the exploration phase.

Guillaume Lucci, Prime Infra president and chief executive officer, said the deal strengthens the firm’s technical expertise in the oil and gas sector and complements its existing infrastructure base in the Philippines.

Lucci added that the move positions the company to better navigate a global energy landscape currently defined by geopolitical volatility, which has left the sector increasingly vulnerable to supply shocks and price fluctuations.

“This acquisition strengthens our oil and gas expertise and complements our existing asset base in the Philippines,” Lucci said.

The deal follows a period of aggressive expansion for Prime Infra. The company recently solidified its domestic energy footprint through a ₱50 billion agreement with First Gen Corp. to secure major stakes in five gas-fired power plants.

Beyond the Philippines, the firm has already established a presence in Latin America through its subsidiary, Manila Water Asia Pacific Pte. Ltd., which holds a nearly 75 percent stake in Mexico’s Agua de Puebla.

Tony Hayward, SierraCol executive chairman, said the entry of Prime Infra provides the company with a strategic partner capable of offering access to long-term capital for future growth.

“I am also delighted to welcome Prime Infra, a strategic investor who will contribute to the sustainability of the business and provide SierraCol with access to long term capital,” he said.

Hayward noted that the current leadership team will remain in place to manage the transition and oversee the next stage of the company's operations.