GeoPark plans to invest up to $140M yearly in Venezuela

GeoPark is preparing to invest up to $140 million annually to reactivate the Bare block, marking its first operation in Venezuela. CEO Felipe Bayon said the plan aims to recover more than 400 wells and steadily expand crude output.

The company expects to allocate between $40 million and $80 million annually through 2028. Spending will then increase to between $120 million and $140 million per year in 2029 and 2030 as drilling accelerates. The first phase runs through 2030, covering well workovers, horizontal drilling, and infrastructure rehabilitation.

Bare currently produces about 11,000 barrels per day, while its facilities can handle up to 30,000 barrels per day. The field holds over 1,100 wells and has a recovery factor of 4% to 5%. GeoPark projects production reaching about 20,000 barrels per day in 2027, exceeding 30,000 in 2028, and reaching between 45,000 and 56,000 barrels per day by 2030. The company plans to approach 90,000 barrels daily starting in 2031.

GeoPark signed a 25-year production-sharing contract with Petróleos de Venezuela, serving as operator with a 65% net economic interest while financing 100% of approved capital investments. The remaining 35% covers royalties, taxes, and PDVSA's share. The agreement grants GeoPark ownership and direct marketing rights over its crude share. The deal remains subject to regulatory and sanctions-related compliance requirements, with an estimated period of up to 120 days before taking effect. Bayon also stated that GeoPark screens every project against a minimum return threshold of 15%.