The acquisition of 100% of the shares of Sierra Oil & Gas by DEA Deutsche Erdoel AG was completed on the 19th of March.
With the deal, DEA enhances its presence in Mexico and its long-term commitment to the country’s oil and gas industry. Mexico’s National Hydrocarbons Commission (CNH) and the Federal Economic Competition Commission (COFECE) have approved the transaction.
The acquisition has enhanced DEA’s presence in the Mexican E&P market significantly. The deal comprises of six exploration and appraisal blocks in Mexico, including a material stake in the world class Zama discovery.
Maria Moraeus Hanssen, DEA’s CEO says: “We are very pleased to complete the transaction. DEA sees Mexico as a growth market for its gas and oil business. Following the combination of the new Sierra portfolio and the existing DEA assets, we will have a very active year ahead in terms of operations. The acquisition of Sierra is a fantastic opportunity for us to become a very serious player with a significant portfolio in the country. We are building a leading private upstream company in Mexico.”
With the closing of the acquisition, Sierra Oil & Gas has become a subsidiary of DEA Deutsche Erdoel AG. DEA will now start to consolidate its two companies in Mexico, Deutsche Erdoel México and Sierra Oil & Gas, to create a new business unit.