Parex closes deal to become Colombia’s largest independent

BOGOTá, June 3, 2026 – Parex Resources has completed its acquisition of Frontera Energy’s E&P assets in Colombia and claimed the position as the largest independent oil and gas producer in the country, Parex said on Monday.

In March 2026, Parex announced its acquisition of 100% of Frontera Petroleum International Holdings for USD 500 million in cash, which it funded through the issuance of senior unsecured notes and net debt. The company also agreed to a further USD 25 million payment contingent upon the execution of an extension to the Quifa Association Contract within 12 months.

“This is a significant milestone for Parex and marks the successful completion of a highly strategic transaction. Completed at an attractive valuation, it enables capital allocation optionality across the portfolio, and offers meaningful synergy potential given the strong strategic fit,” said Parex president and CEO Imad Mohsen.

The deal adds 37,000 boepd of low-decline production and supports Parex’s H2 2026 average production guidance of 82,000-91,000 boepd. The company said the transaction gives it more than 7.9 million acres of land in Colombia, and will allow it to incorporate capabilities for EOR, horizontal and multilateral drilling, and advanced seismic imaging.

In May 2026, Parex agreed to acquire a 50% participating stake in Ecopetrol’s oil assets in Colombia’s Magdalena Basin under a five-year USD 250-million investment programme. The assets currently produce approximately 14,900 bpd of medium crude oil and are estimated to hold more than 3 billion barrels of oil in place.

Parex is an oil and gas company headquartered in Calgary that focuses on the exploration and production of oil and natural gas in Colombia. It has operations in the Llanos, Magdalena and Putumayo basins that include natural gas developments and heavy oil projects.

Photo courtesy of Frontera Energy

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