Frontera Energy Corp. has announced plans to reorganize its corporate structure. The company intends to separate its Colombian infrastructure assets into a new, independent entity. This strategic move aims to create two distinct businesses, each with a specialized operational focus.
New Infrastructure Company to Emerge
The planned separation will establish a new, standalone company. This new entity will operate under the name Frontera Infrastructure. It will assume full responsibility for all of Frontera Energy’s infrastructure assets located within Colombia. These assets typically include crucial facilities such as pipelines, storage terminals, and processing plants, essential for energy transport within the region.
Focus on Asset Management
Frontera Infrastructure will function as an independent company. Its primary objective involves the efficient management and optimization of its vital infrastructure assets. This includes maintaining and developing the networks necessary for transporting oil and gas products.
Frontera E&P’s Refocused Mission
The remaining core of Frontera Energy’s business will adopt a new identity. It will operate as Frontera Exploration & Production (E&P). This segment will become a pure-play upstream operator. Consequently, Frontera E&P will concentrate solely on the exploration, development, and production of hydrocarbon resources.
Embracing a Pure-Play Upstream Model
Frontera E&P will now focus exclusively on its core upstream activities. This strategic shift means the company will no longer manage infrastructure assets. Instead, it will dedicate its resources to discovering and extracting oil and gas reserves. This pure-play model provides a clearer operational and investment profile for upstream ventures.
1 Comment