GeoPark, Repsol terminate Colombia assets deal following preemptive rights exercise
GeoPark Ltd., Bogota, Colombia, and Repsol will not proceed with a deal signed late last year for exploration and production assets in Colombia after a Repsol partner exercised preemptive rights.
In November 2024, GeoPark agreed to acquire upstream oil and gas assets in Colombia from Repsol Exploración SA and Repsol E&P SARL for $530 million (OGJ Online, Dec. 2, 2024).
The acquisition would have added assets in Llanos basin, one of the country’s most productive oil regions where GeoPark has existing operations, the company said at the time.
With the proposed deal, GeoPark would have acquired, among other assets, Repsol’s 25% interest in SierraCol Energy Arauca LLC (Llanos Norte) in Arauca Department. However, Repsol’s partner in SierraCol Energy Arauca exercised its preemptive rights under the terms of the LLC agreement. Internal estimates by SierraCol Energy, as of Dec. 31, 2023, show the company holds about 10% of the production share in Colombia. With four operating hubs, it is the largest independent oil producer in the country.
As a result, GeoPark and Repsol have agreed not to proceed with the previously disclosed transaction, which also would have included Repsol’s 45% working interest in the CPO-9 block.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
