Bracewell advises Gran Tierra on agreement to sell its Colombia and Ecuador business to Maurel & Prom for US$1.33 billion
Published by Elizabeth Corner,
Senior Editor
Oilfield Technology,
Bracewell LLP advised Gran Tierra Energy Inc. on the share sale and purchase agreement to sell its oil business in Colombia and Ecuador to Établissements Maurel & Prom S.A., a Paris-listed international oil and natural gas exploration and production company majority owned by PT Pertamina Internasional Eksplorasi dan Produksi (PIEP), a subsidiary of Indonesia’s national energy company, PT Pertamina (Persero), representing a total consideration of US$1.33 billion.
The transaction values the divested business at a total enterprise value of US$1.33 billion. This figure includes the assumption by Maurel & Prom of Gran Tierra’s 9.750% Senior Secured Amortising Notes due 2031 and 9.500% Senior Notes due 2029, as well as the prepayment facility. After the assumption of substantially all liabilities, customary closing adjustments, working capital adjustments, redemption by Gran Tierra of its 7.750% Senior Notes due 2027 and transaction costs, Gran Tierra is expected to have total net cash proceeds of approximately US$315 million of this total, Gran Tierra will have approximately US$250 million in cash at closing, and the remaining US$65 million will be payable 364 days thereafter pursuant to an unsecured note issued by the divested business. The divested business comprises all of Gran Tierra’s assets in Colombia and Ecuador.
Completion is subject to Gran Tierra stockholder approval, requisite creditor and prepayment buyer consents, and regulatory approvals in Colombia and Ecuador. The transaction is targeted to close on or about 31 December 2026, with an economic effective date of 31 March 2026.
Ben James, who led the transaction for Bracewell, commented: “We are delighted to have advised our longstanding client Gran Tierra on such an important transaction. We look forward to closing the deal, wish Maurel & Prom every success with their new stewardship of this business and look forward to Gran Tierra capitalizing on this deal as it progresses its new businesses. My thanks to all the Bracewell team for their hard work and dedication to this deal.”
Bracewell Client: Gran Tierra Energy Inc.
Deal Value: US$1.33 billion.
Bracewell lawyers involved in the transaction:
- Partners: Ben James (London), Troy L. Harder (Houston), Parker A. Lee (New York) and Allison K. Perry (Houston).
- Senior Associate: Danielle Altink (London).
- Associates: Shannon Baldwin (Houston), Georgina Coates (London), Ashleigh Campbell (London) and Sam S. Folb (Houston).
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/12082026/bracewell-advises-gran-tierra-on-agreement-to-sell-its-colombia-and-ecuador-business-to-maurel-prom-for-us133-billion/