GeoPark Limited is acquiring upstream oil and gas assets in Colombia from Repsol for $530 million, focusing on high-quality assets in the Llanos Basin. The acquisition includes stakes in CPO-9 Block and SierraCol Energy Arauca LLC, expected to yield significant daily production. This move aligns with GeoPark’s growth strategy and complements its recent endeavors in Argentina, strengthening its position in the Latin American oil market.
GeoPark Limited, a prominent Latin American oil and gas company, is set to acquire upstream oil and gas assets in Colombia from Repsol for approximately $530 million. Through signed sale and purchase agreements with Repsol Exploración S.A. and Repsol E&P S.A.R.L., GeoPark will take over high-quality assets located in the Llanos Basin, known for being one of Colombia’s most productive oil regions. The acquisition includes full ownership of Repsol Colombia O&G Limited, which holds a 45 percent non-operated working interest in the CPO-9 Block and a 25 percent interest in SierraCol Energy Arauca LLC (Llanos Norte).
These assets produced around 16,000 barrels of oil equivalent per day as of September. The financing for this acquisition will comprise a blend of cash and debt, including a non-recourse amortizing debt facility of up to $345 million. GeoPark emphasizes that this acquisition aligns with its growth strategy, providing immediate production and long-term cash flow with low capital investment intensity. The Repsol assets complement GeoPark’s prior investments, particularly its recent entry into the Vaca Muerta play in Argentina, thereby enhancing risk diversification within its portfolio.
The transaction is subject to customary regulatory approvals and the fulfillment of conditions, such as addressing the preemptive rights of Repsol’s current partners. Additionally, GeoPark recently initiated production at the Confluencia Norte Block in Argentina, affirming the presence of the Vaca Muerta formation, and completed a successful high intensity fracturing program that currently yields 4,000 barrels of oil per day during the flowback phase.
Latin America has emerged as an essential region for oil and gas exploration and production, with Colombia’s Llanos Basin being particularly recognized for its prolific output. GeoPark Limited’s strategic movements in acquiring Repsol’s Colombian assets signal a significant push to strengthen its oil production capabilities and market presence. With a well-established track record in oil operations, GeoPark aims to leverage these new assets to enhance its production capacity while minimizing investment risks. The completion of these transactions and ongoing projects reflect the company’s commitment to expanding its foothold in strategically important areas within Latin America.
In summary, GeoPark Limited’s acquisition of assets from Repsol for $530 million highlights the company’s strategic intent to reinforce its position in Colombia’s lucrative oil sector. The acquisition will augment GeoPark’s existing portfolio by providing immediate production benefits and potential growth opportunities with lower capital risks. This acquisition, alongside recent developments in Argentina, positions GeoPark favorably amid the competitive landscape of the oil and gas industry in Latin America, underscoring its ongoing commitment to sustainable growth and diversification.
Original Source: www.rigzone.com
