Prime Infrastructure Capital Inc. (Prime Infra), part of the Razon Group, has agreed to acquire all shares of SierraCol Energy Limited from global investment firm The Carlyle Group, a move analysts describe as timely and strategically important for both the company and the Philippines’ energy security.
Analysts say the acquisition will give Prime Infra access to producing oil fields, reserves, and pipeline infrastructure in Colombia. SierraCol is the country’s largest independent oil producer and accounts for more than 10 percent of its national oil output.
Peter Garnace, research analyst at Unicapital Securities Inc., said the deal provides Prime Infra with production-ready assets that are close to processing, storage, and transport facilities, allowing for efficient and low-cost oil production. He added that SierraCol’s output of about 77,000 barrels of oil equivalent per day could potentially supply up to one-fifth of the Philippines’ oil demand.
Analysts also said the acquisition could help reduce the Philippines’ reliance on oil imports from the Middle East, which currently supplies nearly 90 percent of the country’s oil requirements. The move would also make Prime Infra the first Filipino-controlled international upstream oil producer.
Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, said the transaction aligns with Prime Infra’s strategy of expanding its energy operations and strengthening supply chain integration.
SierraCol owns major oil assets in Colombia, including the Caño Limón and La Cira Infantas fields, known for producing high-quality crude. Company executive chairman Tony Hayward said SierraCol’s leadership team will remain in place as the company enters its next stage under Prime Infra.
Prime Infra president and chief executive officer Guillaume Lucci said the acquisition strengthens the firm’s expertise in oil and gas and complements its existing energy assets in the Philippines.
The transaction is subject to regulatory approvals and is expected to close in the coming months. Prime Infra said the deal will help expand its energy portfolio while supporting broader energy security and sustainability goals.
