Parex-Frontera E&P Merger Creates Colombia's Largest Independent Oil & Gas Producer

---

Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Parex Resources has finalized the acquisition of Frontera Energy's exploration and production assets, creating what Parex describes as Colombia's largest independent oil and gas producer.

---

Acquisition Closes

Parex Resources on Monday announced it has closed on its acquisition of the exploration and production (E&P) assets of Frontera Energy, collectively known as Frontera Petroleum International Holdings or Frontera E&P, creating the largest independent oil and gas producer in Colombia. The country's top producer remains state-run Ecopetrol. Industrial Info Resources data find that Parex and Frontera have more than US$100 million worth of drilling programs planned or in progress, primarily in Colombia, with a few outliers in Peru and Ecuador planned by Frontera.

Parex acquired 100% of Frontera E&P in a US$500 million cash deal that includes another US$25 million contingent upon a contract extension. In addition to unlocking synergies and allowing for streamlining between the two companies, the deal adds 37,000 barrels oil-equivalent per day (boe/d) to Parex's assets, supporting a boost in the company's production guidance in the second half of 2026 from 82,000 boe/d to 91,000 boe/d. Many of the Frontera production programs are in the planning or engineering stage and will begin production at a future date.

Parex Chief Executive Officer Imad Mohsen said, "The addition of Frontera E&P's upstream business to our high-quality portfolio establishes Parex as the largest independent, Colombia-focused upstream company, with greater scale, enhanced capital efficiency, and a more resilient platform for long-term growth."

According to Industrial Info Resources, that growth involves more than US$58 million worth of planned and underway Frontera drilling programs in Colombia.

Frontera Drilling Programs

Frontera's most significant activity presently underway involves three drilling sites in Colombia's Meta department, Colombia's equivalent to a state or province. These include:

• Frontera's Cajua development program, which involves drilling six to 10 wells this year.
• Another seven to 12 wells developed as part of Frontera's Quifa program.
• The CPE-6 program, involving eight to 15 new wells this year.

Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

Multiple future projects are planned by Frontera, including continuations of the Cajua, Quifa and CPE-6 programs. Two other Frontera drilling programs planned to kick off this year at other locations together will add another eight to 10 wells.

Parex Projects

Frontera's drilling programs will be added to Parex's existing portfolio of projects, two of the most significant of which are planned this year for the Capachos field in the Arauca administrative department and the Cabrestero field in the Casanare department. Parex is expected to drill eight to 10 wells at the sites this year and another six to 10 wells at the two sites next year.

Ecopetrol's Dominance

Despite the newly combined strengths of Parex and Frontera E&P, the new company's actives are dwarfed by state-owned Ecopetrol. In addition to associated midstream and downstream projects, Industrial Info Resources data find more than US$218 million worth of Ecopetrol drilling programs on the books, including plans at 20 sites this year.

Key Takeaways

• Parex has announced the completion of its US$500 million acquisition of Frontera E&P.
• The deal creates Colombia's largest independent oil and gas producer. State-run Ecopetrol remains the country's largest overall producer.
• The acquisition supports Parex's increase in production guidance for the second half of 2026 from 82,000 boe/d to 91,000 boe/d.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).