Maurel & Prom expands Latin American footprint with $1.33 billion acquisition of Gran Tierra assets

Gran Tierra Energy has agreed to sell its entire upstream oil operations in Colombia and Ecuador to Paris-listed Établissements Maurel & Prom S.A. for $1.33 billion in enterprise value. The transaction transfers over $1 billion in debt liabilities, leaving Gran Tierra debt-free to focus on its Canadian and Azerbaijani assets.

Gran Tierra Energy Inc. has entered into a definitive agreement to divest its entire South American upstream portfolio in Colombia and Ecuador to French energy producer Établissements Maurel & Prom S.A. for a total enterprise value of $1.33 billion, according to official regulatory disclosures. Under the terms of the deal, Maurel & Prom will assume Gran Tierra's senior secured notes due 2029 and 2031 alongside existing prepayment debt facilities. After accounting for debt transfers, working capital adjustments, and the redemption of Gran Tierra's 2027 senior notes, Gran Tierra expects net cash proceeds of approximately $315 million, comprising $250 million in cash at closing and a $65 million deferred note payable within one year. The divested assets encompass approximately 1.4 million gross acres across Colombia and Ecuador, generating an average first-half 2026 working-interest production of roughly 29,000 barrels of oil per day and holding 144 million barrels of proved-plus-probable oil reserves. Gran Tierra Energy is an independent international energy firm listed on the NYSE American, TSX, and LSE, while Maurel & Prom is a Euronext Paris-listed upstream operator majority-owned by PT Pertamina Internasional Eksplorasi dan Produksi, a subsidiary of Indonesia’s state energy enterprise PT Pertamina.

The divestment represents a transformative strategic shift for Gran Tierra, converting the company into a debt-free upstream enterprise with drastically reduced interest burdens. By transferring over $1 billion in debt liabilities to the purchaser and redeeming its remaining 2027 notes, Gran Tierra will eliminate approximately $80 million in annual corporate interest costs while bolstering its cash reserves. This structural overhaul eliminates balance sheet leverage and frees up capital to fund share repurchases, accelerate development across its Canadian asset base, and advance its exploration and development sharing agreement for the onshore Guba-Khazaryani region in Azerbaijan. For Maurel & Prom, the transaction significantly expands its Latin American operating pillar by adding high-margin production and extensive reserve bases in established South American basins.

From an industry perspective, the transaction demonstrates an ongoing trend of North American independent oil companies optimizing their global asset portfolios by divesting capital-intensive international holdings to well-funded international operators. The deal is subject to customary closing conditions, including Gran Tierra shareholder approval, creditor consents, and regulatory clearances in South America—notably from Colombia’s Superintendence of Industry and Commerce, the National Hydrocarbons Agency, and Ecuadorian antitrust regulators. Target completion is set for late December 2026, backed by a $50 million mutual termination fee, with an economic effective date retroactively applied to March 31, 2026.

For investors and energy market participants, the transaction highlights a disciplined approach to capital reallocation and corporate deleveraging in the upstream sector. Following the sale, Gran Tierra expects to maintain a streamlined production base of 12,000 to 13,000 barrels of oil equivalent per day from its Canadian assets, backed by an undrawn CAD 75 million credit facility. The substantial cash influx and complete debt elimination position the company to withstand commodity price volatility, enhance per-share asset metrics through equity repurchases, and pursue higher-return growth initiatives in Canada and the Caspian region without relying on external debt financing.