GeoPark enters Venezuelan oil market via Bare block acquisition

Colombian oil company GeoPark has announced its strategic entry into the Venezuelan market through the acquisition of the Bare block, located in the Orinoco Oil Belt. The asset is a large-scale mature oil field containing approximately 1,100 wells. While current gross production is near 11,000 barrels per day, the company identifies a potential to scale production up to 95,000 barrels per day.

GeoPark has signed a 25-year Productive Participation Contract (CPP) with the state-owned PDVSA. Under this agreement, GeoPark will finance all capital expenditures and maintain a 65% operating interest. The transaction, valued at approximately $160 million, was facilitated by the Gilinski Group. As part of the deal, GeoPark will initially take a 5% stake in the contract's holding company before acquiring the remaining 95% from Gilinski through the issuance of 42.1 million new shares.

Following the transaction, the Gilinski Group will become the majority shareholder of GeoPark, controlling approximately 56.3% of the company. Jaime Gilinski, president of the Gilinski Group, expressed confidence in Venezuela's potential, while GeoPark CEO Felipe Bayon noted that the reactivation of Venezuela's energy sector represents one of the most significant industrial opportunities in Latin America.