GeoPark acquires Repsol’s Colombian oil and gas assets for $530 million

GeoPark Limited, a prominent independent energy company operating across Latin America, has signed Sale and Purchase Agreements (SPAs) with Repsol Exploración S.A. and Repsol E&P S.A.R.L to acquire key oil and gas assets in Colombia.

The acquisition encompasses Repsol Colombia O&G Limited’s 45% non-operated working interest in the CPO-9 Block in the Meta Department, as well as a 25% interest in SierraCol Energy Arauca LLC’s Llanos Norte assets in the Arauca Department. Together, these holdings, located in Colombia’s prolific Llanos Basin, produced approximately 16,000 barrels of oil equivalent per day (boepd) net to Repsol as of September 2024.

GeoPark, already a well-established operator in the Llanos Basin, views this acquisition as a strategic alignment with its "North Star" growth strategy. This approach focuses on acquiring high-value, large-scale assets in proven oil regions to build a sustainable and profitable portfolio. The Repsol assets offer GeoPark significant immediate production, reserves, and cash flow, as well as long-term low-risk growth and exploration potential.

The US$530 million transaction will be financed through a combination of cash resources and debt. A non-recourse debt facility of up to US$345 million, arranged by Macquarie Bank Limited, will play a central role. This facility, combined with a robust hedging strategy, underscores the assets’ strong cash generation and mitigates price volatility risks.

Completion of the deal is subject to regulatory approvals and certain conditions, including the waiver of preemptive rights by Repsol’s current partners. GeoPark emphasised that confidentiality agreements prevent further disclosure until the transaction is finalised or terminated.

This acquisition follows GeoPark’s recent expansion into Argentina’s Vaca Muerta shale play, reflecting the company’s broader strategy of diversifying assets and country risks while securing long-term growth opportunities in Latin America.