GeoPark to invest $7 billion to lift output at Venezuelan oilfield
GPRK•GeoPark plans to invest $7 billion in Venezuela’s Bare oilfield, aiming to raise output to about 90,000 barrels per day by 2038 from 11,000 currently. The company plans to reactivate up to 1,100 wells in the first development phase.
1. Bare oilfield investment
GeoPark plans to begin operations at the Bare oilfield in the Orinoco Belt in December, following a 25-year production-sharing agreement signed with Venezuela’s government earlier this month. The company’s chief executive, Felipe Bayon, said the investment aims to increase output to about 90,000 barrels per day by 2038 from the current 11,000.
2. Development and financing
The redevelopment is expected to proceed in four phases, with up to 1,100 wells reactivated and about 80 new horizontal wells potentially drilled later. GeoPark said it has access to about $700 million in liquidity and committed financing for the initial investment, including $310 million in cash. The transaction was financed with GeoPark equity and is expected to result in Colombia’s Grupo Gilinski indirectly acquiring control of the company.
3. Regional production target
GeoPark said Bare’s incorporation and higher production at Argentina’s Vaca Muerta could potentially raise its production to 75,000–85,000 barrels of oil equivalent per day by 2030, about 2.7 times current levels.
