(WO) – GeoPark’s 25-year production participation contract (CPP) for the Bare Block in Venezuela has taken effect, completing the company’s entry into the country. As part of the deal, Colombia’s Grupo Gilinski becomes GeoPark’s controlling shareholder.
Under the contract with PDVSA Petróleo S.A. (PPSA), GeoPark will operate the block, fund 100% of capital expenditures under approved work programs and hold a 65% net participating interest. The CPP, established under Venezuela’s Organic Hydrocarbons Law and its new regulations, also gives GeoPark direct commercialization rights, access to critical infrastructure and operational control provisions. GeoPark said the contract became effective well ahead of the 120-day deadline set in the agreement, following approval of the final Bare Block development and business plan and execution of all complementary agreements with PPSA.
GeoPark plans to complete its operational takeover of the block before the end of 2026. The company has already assessed about 300 to 400 wells for reactivation. These will form the basis of the initial redevelopment phase, which will focus on stabilizing production, reactivating wells, carrying out workovers and rehabilitating infrastructure. The Bare Block adds a long-term brownfield redevelopment platform to GeoPark’s existing operations in Colombia and Argentina.
“Our focus now fully shifts to operational execution, starting with a safe and disciplined takeover,” said GeoPark CEO Felipe Bayon. “With reactivation wells already assessed and critical readiness activities well advanced, we have the foundation to stabilize production, reactivate existing capacity and progressively unlock the Bare Block’s substantial potential.”
To complete the deal, GeoPark acquired the remaining 95% of the CPP holding company from a Grupo Gilinski subsidiary in exchange for 42.1 million new GeoPark shares, with no cash payment. Gilinski will now hold about 56.3% of GeoPark, which remains listed on the NYSE. Under the deal terms, the group must launch a tender offer within 90 days for up to $100 million of the remaining shares, at $12.22 per share. The transaction, first announced in September, is part of a wave of new investment following Venezuela’s oil sector reforms.
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