GeoPark Expands into Venezuela with $160M Bare Block Deal

Event summary

GeoPark acquires Bare Block in Venezuela’s Orinoco Heavy Oil Belt via a 25-year Production Participation Contract (CPP) with PPSA.
Transaction valued at $160M, with Grupo Gilinski acquiring 56.3% of GeoPark shares at a 26% premium.
Bare Block has 15.7B barrels of original oil in place, with current production of 11,000 bopd and peak potential of 85,000-95,000 bopd.
GeoPark expects to increase its production to 75-85 kboepd by 2030, up from current levels.

The big picture

GeoPark’s entry into Venezuela marks a strategic pivot into one of the world’s largest hydrocarbon basins, complementing its existing operations in Colombia and Argentina. The deal reflects a broader trend of energy companies seeking high-scale, long-duration reserves amid global energy transition pressures. The transaction’s structure, including a tender offer for shareholders, underscores the strategic importance of the Bare Block asset and the potential for significant production growth.

What we're watching

Execution Risk: Whether GeoPark can successfully redevelop Bare Block amid Venezuela’s operational and regulatory challenges.
Market Reaction: How investors respond to Grupo Gilinski’s increased control and the strategic shift into Venezuela.
Production Growth: The pace at which GeoPark can ramp up production in Bare Block and Vaca Muerta to meet 2030 targets.