Gran Tierra Energy has agreed to sell its oil operations in Colombia and Ecuador to France’s Maurel & Prom for US$1.33 billion, including the assumption of associated debt.
The Calgary-based independent producer announced the transaction on Wednesday, marking a decisive shift in its geographic footprint and capital structure.
The deal is expected to eliminate the majority of Gran Tierra’s interest expenses, significantly reducing its financial leverage.
By divesting its South American assets, the company is effectively exiting the region to focus on its remaining operations, likely in the United States, while shedding the debt burden tied to these international projects.
Maurel & Prom, a French independent oil and gas company, expands its presence in South America through the acquisition.
The transaction reflects a broader trend among smaller energy producers to streamline portfolios and reduce exposure to higher-risk jurisdictions amid volatile commodity markets.