GeoPark Acquires Colombian Oil and Gas Assets from Repsol for $530 Million
GeoPark Limited is acquiring upstream oil and gas assets from Repsol in Colombia for approximately $530 million. The deal includes assets in the Llanos Basin, known for high production rates, with an output rate of 16,000 barrels of oil equivalent per day. GeoPark is financing the acquisition through cash and debt, enhancing its operational footprint and supporting its growth strategy. The acquisition also complements GeoPark’s recent entry into Argentina’s Vaca Muerta play, diversifying its asset portfolio in Latin America.
GeoPark Limited, a prominent player in the Latin American oil and gas sector, has finalized acquisition agreements to acquire upstream oil and gas assets in Colombia from Repsol for $530 million. This transaction encompasses Repsol Colombia O&G Limited, which holds a 45 percent non-operated interest in the CPO-9 Block in the Meta Department, alongside Repsol’s 25 percent interest in SierraCol Energy Arauca LLC. The assets in question boast a production rate of approximately 16,000 barrels of oil equivalent per day, as recorded in September. Notably, this acquisition aligns with GeoPark’s growth strategy, promoting access to large, competitively balanced assets in prolific basins to foster a profitable and sustainable oil and gas portfolio throughout Latin America. Moreover, the move enhances risk diversification following GeoPark’s recent foray into the Vaca Muerta play in Argentina. The transaction remains subject to regulatory approvals and the execution of preemptive rights by Repsol’s partners. Furthermore, GeoPark has commenced production at its Confluencia Norte Block in Argentina, where three unconventional wells began yielding oil recently.
GeoPark’s acquisition of assets from Repsol is a strategic maneuver to expand its operational footprint in Colombia’s Llanos Basin, a region known for its rich oil deposits and production potential. The Llanos Basin is recognized as one of Colombia’s most productive oil regions, allowing GeoPark to leverage its previous success and established operations there. The recent acquisition dovetails with the company’s overall growth strategy, which emphasizes building a diverse and sustainable portfolio amidst fluctuating market conditions. With the new assets, which include interests in key oil-producing blocks, GeoPark aims to enhance its production capabilities and ensure cash flow stability. This move also complements its engagement in Argentina’s Vaca Muerta play, showcasing GeoPark’s commitment to broadening its exposure across Latin America.
The acquisition of Colombian assets from Repsol by GeoPark Limited represents a significant step in the company’s expansion agenda. With a focus on high-quality assets in the established Llanos Basin and a strategic fit with the company’s growth objectives, this transaction is poised to enhance GeoPark’s production capacity and bolster its operational resiliency in the volatile oil and gas industry. As GeoPark continues to pursue opportunities across Latin America, this acquisition underscores its commitment to creating a robust, sustainable portfolio for long-term success.
Original Source: www.rigzone.com
