GeoPark has initiated a 25-year production sharing contract (CPP) for the Bare Block in Venezuela, officially completing the company's entry into the Venezuelan market. Under this contract, Grupo Gilinski from Colombia is recognized as the controlling shareholder of GeoPark.
Contract Details with PDVSA
In this contract with PDVSA Petróleo S.A. (PPSA), GeoPark is responsible for the operation of the Bare Block and will cover 100% of the investment costs under approved work programs. Additionally, GeoPark will hold a 65% share of net participation in this field. This contract, established under Venezuela's Organic Hydrocarbons Law and its new regulations, grants GeoPark direct commercialization rights, access to critical infrastructure, and operational control conditions. GeoPark has announced that this contract was executed before the 120-day deadline set in the agreement, and after the final approval of the development and business plan for the Bare Block and the execution of all supplementary agreements with PPSA.
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Development and Investment Plans
GeoPark plans to complete the operational delivery of the Bare Block before the end of 2026. The company has already conducted necessary assessments on approximately 300 to 400 wells to resume activities. These wells will form the basis of the initial reconstruction phase, focusing on stabilizing production, resuming well activities, and undertaking repair and reconstruction work on infrastructure. The Bare Block adds a long-term reconstruction platform to GeoPark's existing operations in Colombia and Argentina.
Felipe Bayón, CEO of GeoPark, stated: "Our focus is now fully shifted to operational execution, and we will begin with a safe and orderly delivery. With the assessment of the resumption wells and critical preparation activities well underway, we have a foundation for stabilizing production, resuming existing capacity, and gradually unlocking the significant potential of the Bare Block."
To complete this contract, GeoPark has purchased the remaining 95% of the parent company CPP from a subsidiary of Grupo Gilinski, in exchange for 42.1 million new shares of GeoPark, with no cash payment involved. Following this transaction, Grupo Gilinski has acquired approximately 56.3% of GeoPark's shares, which are listed on the New York Stock Exchange (NYSE). Under the terms of this agreement, the group must submit a buyout offer worth up to $100 million for the remaining shares at a price of $12.22 per share within 90 days. This deal, first announced in September, is part of a new wave of investments following reforms in Venezuela's oil sector.
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