PDVSA, Venezuela’s state-owned oil company, and GeoPark have officially signed a 25‑year Production Participation Contract (CPP) for the Bare block. Bare is located in Venezuela’s Orinoco Heavy Oil Belt and is a mature heavy oil asset already in production. Under the contract terms, GeoPark will serve as the project operator, bear 100% of the capital expenditures under the approved work program, and hold a 65% net working interest in the project. The contract also grants the operator the rights to directly sell and monetize the oil and gas products, use key infrastructure, and participate in operational control, among other rights.
The Bare block holds original oil in place (OOIP) of approximately 15.7 billion barrels, with cumulative historical production exceeding 700 million barrels and around 1,100 wells currently in place. The block’s historical peak production surpassed 100,000 barrels per day, while current total output stands at about 11,000 barrels per day. GeoPark’s redevelopment plan targets a peak total production of roughly 85,000 to 95,000 barrels per day, with GeoPark’s corresponding net production expected to sustain a plateau of 55,000 to 62,000 barrels per day for over 10 years.
The current development plan is projected to deliver approximately 400 million barrels of cumulative net production to GeoPark and aims to increase the recovery factor of the Bare block from the current 4%–5% to 8%–9%. The project will be implemented in phases using the existing well network and already built infrastructure for field redevelopment, including restoration and enhancement of existing production capacity, infrastructure repairs, and subsequent drilling of production wells and surface facility investments.
The Bare project was facilitated by Grupo Gilinski as the transaction arranger. GeoPark first acquired a 5% interest in the company holding the CPP rights, and subsequently plans to acquire the remaining 95% interest held by Grupo Gilinski, with 42.1 million GeoPark shares as the base consideration. The share issue price is set at $12.22 per share, representing a premium of approximately 26% over the 30‑day volume‑weighted average price of $9.67 during the reference period; this transaction arrangement corresponds to a value of roughly $160 million. Upon completion, Grupo Gilinski is expected to indirectly become GeoPark’s controlling shareholder.
GeoPark disclosed on September 2 that the effectiveness of the Bare project contract framework remains subject to applicable approvals, authorizations, regulatory clearances, and sanctions compliance requirements, with an estimated maximum processing period of approximately 120 days. Accordingly, the formal signing of the CPP on September 4 represents a new contractual milestone for the project, after which the process will move into the phase of obtaining relevant approvals and fulfilling conditions for the contract’s entry into force.
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Post time: Sep-09-2026