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🇵🇾 Paraguay /Energy & Infrastructure

Colombian oil company GeoPark announces ‘strategic entry into Venezuela’

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • Colombian oil company GeoPark announced plans to acquire the Bare block in Venezuela’s Orinoco oil belt under a 25-year contract with PDVSA.
  • The block has about 1,100 wells and current gross production of 11,000 barrels per day, with potential to reach 95,000 barrels per day, according to the company.
  • The announcement followed plans by Chevron to invest up to $7 billion in Venezuela over five years and seek to double its production there.

GeoPark is calling its move into Venezuela a “strategic entry,” built around the acquisition of the Bare block in the Orinoco oil belt. The Colombian oil company says the asset combines existing production, installed infrastructure and substantial remaining recovery potential.

The block includes about 1,100 wells and currently produces 11,000 barrels per day on a gross basis, according to GeoPark. The company estimates the field’s overall potential at up to 95,000 barrels per day. It signed a 25-year Production Participation Contract with Venezuela’s state oil company, PDVSA.

We believe in Venezuela’s potential and in GeoPark’s ability to develop Bare responsibly. We are proud to support the company’s growth in the country.

· Jaime GilinskiThe Grupo Gilinski chairman described the company’s expansion into Venezuela.

Jaime Gilinski, chairman of Grupo Gilinski, said the company believed in Venezuela’s potential and in GeoPark’s ability to develop Bare responsibly. GeoPark’s chief executive, Felipe Bayón, described the reactivation of Venezuela’s energy sector as one of Latin America’s most important industrial opportunities and said the company was well positioned to pursue it.

The reactivation of Venezuela’s energy sector represents one of the most important industrial opportunities in Latin America.

· Felipe BayónGeoPark’s chief executive assessed the opportunity presented by the Venezuelan energy sector.

GeoPark also said it hoped to create sustainable long-term value for Venezuela, its partners and the communities where it will operate. The transaction will make Grupo Gilinski, which owns 20% of GeoPark’s shares, the company’s controlling shareholder. Gilinski is currently the oil producer’s largest shareholder.

The announcement came shortly after Chevron said it planned to invest up to $7 billion in Venezuela over the next five years and aimed to double its production in the country. It also followed a US-Venezuela agreement described as historical and controversial under which Washington would obtain 20% of Venezuela’s oil reserves. Venezuela holds the world’s largest proven crude reserves, according to the report.

We appreciate the trust placed in us by our Venezuelan counterparties and look forward to creating sustainable long-term value for Venezuela, our partners and the local communities where we will operate.

· GeoParkThe company described its intended long-term contribution after announcing the deal.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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