GeoPark Limited, a leading oil and gas exploration and production company in Latin America, has signed an exclusive agreement to acquire Repsol assets in Colombia. This agreement, valued at millions of dollars, will allow GeoPark to expand its presence in the prolific Llanos Basin, one of the most productive oil regions in the country.
The transaction includes the purchase of 100% of Repsol Colombia O&G Limited, a company that holds a 45% non-operated interest in the CPO-9 block in the Meta department, operated by Ecopetrol. In addition, Repsol’s 25% interest in SierraCol Energy Arauca LLC, in the Llanos Norte block, located in the Arauca department, is incorporated . Repsol’s combined assets in Colombia produced around 16,000 barrels of oil equivalent per day (boepd) as of September 2024.
GeoPark buys Repsol assets to expand its presence
[post_relacionado]For GeoPark, this acquisition fits perfectly with its North Star growth strategy, which aims to secure access to large assets with competitive advantages in high-quality basins . The transaction will provide immediate production, reserves and cash flow, with a low initial capital investment and significant low-risk growth potential.
The deal also complements GeoPark’s recent entry into Vaca Muerta , Argentina, expanding its portfolio and diversifying risks across different countries and high-value assets. With this acquisition, GeoPark strengthens its ability to deliver a sustainable and profitable oil and gas portfolio across the Latin American region.
How was the transaction financed?
The total transaction amount, which amounts to 530 million dollars , will be financed through a combination of cash and debt resources. Specifically, Macquarie Bank has arranged a non-recurring amortizable debt facility of up to 345 million dollars, demonstrating the financial strength of Repsol’s assets and the market’s confidence in GeoPark’s ability to meet its commitments.
The transaction is subject to regulatory approvals and the non-exercise of pre-emptive rights by Repsol’s current partners. However, GeoPark is confident that this operation will be carried out successfully, consolidating its position as one of the most relevant oil and gas operators in the region.
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Source: GeoPark Limited
Photo: Shutterstock