Carlyle is exploring the sale of its Colombian oil producer, SierraCol, in a deal expected to be valued at approximately $1.5bn. 

The private equity firm is engaging with potential buyers as part of its broader strategy to monetize energy assets after several years of ownership.

SierraCol, established in 2020 following Carlyle’s acquisition of assets from Occidental Petroleum, is the largest independent oil producer in Colombia, with a daily production capacity of 45,000 barrels of oil equivalent. The company generated $172m in free cash flow in the twelve months leading up to September 2024, with net debt reported at $511m.

Carlyle has a track record of acquiring, scaling, and exiting oil and gas businesses. In recent years, it has sold stakes in Neptune Energy in the North Sea and Assala Energy in Gabon. The firm typically holds energy assets for around five years before divesting, often after increasing reserves and positioning companies for further growth.

While Carlyle pursues a sale of SierraCol, another transaction involving its planned acquisition of oil and gas assets in Italy, Egypt, and Croatia from Energean remains uncertain due to pending regulatory approval from Italian authorities.

The sale of SierraCol aligns with the ongoing trend of private equity firms exiting mature energy investments amid shifting market dynamics. Carlyle has not provided comments on the potential sale, and it remains unclear which buyers are currently engaged in discussions. The transaction, if completed, would mark another significant private equity exit in the oil and gas sector.