Latin American oil and gas explorer GeoPark has scrapped its planned $530 million acquisition of Repsol's upstream oil and gas production assets in Colombia.

Geopark has signed a binding share purchase agreement in November 2024 to acquire these assets.

The agreements involve the acquisition of 100% of Repsol Colombia's O&G, which holds a 45% non-operated interest in block CPO-9 of the Meta segment (operated by Ecopetrol with a 55% interest), as well as Repsol's interest in SierraCol's 25% owned energy Arauca (Llanos Norte) is located in the Arauca province of Colombia.

The termination occurred after Repsol's SierraCol Energy Arauca partner exercised its right of first refusal under the LLC agreement to acquire a 25% interest in the Arauca Department Llanos Norte assets, affecting the agreed terms of the transaction.

The two assets have the potential to net produce approximately 16,000 boe per day for Repsol.

Geopark had expected the acquisition to be consistent with its "North Star" growth strategy. The strategy focuses on securing access to value-added opportunities in key assets in key oil and gas plays and proven basins in order to build and deliver a "highly profitable", "reliable" and sustainable oil and gas portfolio throughout Latin America.

Colombia's Repsol assets are expected to provide near- and long-term production, reserves and cash flows with low capital investment intensity and low growth potential.

The terminated deal is also seen as a strategic complement to Geopark's recent entry into the Vaca Muerta mining complex in Argentina, which will help diversify country risk.

In November 2024, GeoPark, together with Phoenix Global Resources, will begin production from the Confluencia Norte block in Argentina's Rio Negro Vaca Muerta formation.

Previously, they reached an agreement in May 2024 to acquire interests in four blocks in Argentina's Neuquen Basin.

“GeoPark Terminates $530 Million Repsol Upstream Asset Acquisition in Colombia” was originally created and published by Offshore Technology, a brand of GlobalData.

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