Canada's Gran Tierra to sell South American assets to Maurel and Prom in $1.33 billion deal

• Gran Tierra expects to receive net proceeds of approximately $315 million, comprising $250 million in cash and a $65 million unsecured note
• The divested South American assets produced about 29,000 barrels of oil per day in the first half of 2026
• The transaction will eliminate most of Gran Tierra's interest costs, generating annual savings of approximately $80 million

Gran Tierra Energy Divests South American Assets for $1.33 Billion

Canadian oil and gas producer Gran Tierra Energy has agreed to sell its Colombian and Ecuadorean operations to French company Maurel & Prom for $1.33 billion, including debt. The transaction, announced Wednesday, August 5, represents a complete exit from the company's South American portfolio.

Key Transaction Details:

• Total deal value: $1.33 billion (including debt)
• Net proceeds to Gran Tierra: approximately $315 million ($250 million cash plus $65 million unsecured note)
• Divested assets produced approximately 29,000 barrels of oil per day during the first half of 2026

Strategic Rationale:

The divestment is part of Gran Tierra's broader strategic portfolio review, designed to refocus capital allocation on retained assets. The company plans to return a portion of the proceeds to shareholders, though specific distribution details were not disclosed.

Financial Impact:

The deal is expected to eliminate most of Gran Tierra's interest costs, generating annual savings of approximately $80 million. This significant debt reduction will strengthen the company's balance sheet and improve financial flexibility.

Market Implications:

This transaction highlights continued consolidation in the Latin American energy sector, with European players like Maurel & Prom expanding their presence in the region. For Gran Tierra, the sale represents a strategic pivot away from South American operations, allowing the company to reduce debt burden and streamline operations. The asset disposal may signal a shift toward more profitable or strategically aligned holdings, though details on retained assets were not provided.

The deal strengthens Maurel & Prom's position in Colombia and Ecuador, adding meaningful production capacity to its portfolio.