Gran Tierra Energy GTE-T said on Wednesday it had agreed to sell its Colombian and Ecuadorean oil operations to France’s Maurel & Prom for US$1.33-billion, including debt.
The Calgary-based oil and gas producer said it expects to receive net proceeds of about US$315-million from the transaction, comprising US$250-million in cash and a US$65-million unsecured note.
The divested business includes all of the company’s South American assets, which produced about 29,000 barrels of oil per day in the first half of 2026, the Canadian energy producer said.
Gran Tierra expects to return a portion of the proceeds to shareholders through share repurchases.
The divestment is part of the company’s strategic portfolio review, after which it aims to focus capital on its retained assets.
The Canadian company said the deal would eliminate most of its interest costs, generating annual savings of about US$80-million.