Colombia’s oil and gas producer GeoPark is planning a $7 billion investment in Venezuela’s large Bare oilfield to increase crude output there to some 90,000 barrels per day by 2038 from a current 11,000 bpd, the company’s chief executive, Felipe Bayon, said on Tuesday.
With 15.7 billion barrels of original oil in place, Bare will mark GeoPark’s entrance into Venezuela, following a 25-year production-sharing agreement signed with the government earlier this month. The company plans to begin operations in the Orinoco Belt area in December.
“It is a very relevant investment” in terms of capital and expenses to maximize output recovery, Bayon said on Monday at the Venezuela International Oil & Gas Summit (VIOGS) in Caracas, adding that up to 1,100 wells will be reactivated and some 80 new horizontal wells could be drilled later.
Bare’s existing well inventory and installed infrastructure are expected to allow a redevelopment project in four phases, the executive added.
GeoPark said in a release earlier this month that it had access to some $700 million of liquidity and committed financing sources to fund initial investment, including $310 million of cash on hand. The transaction in Venezuela was financed with GeoPark equity and is expected to result in Colombia’s Grupo Gilinski indirectly acquiring control of GeoPark.
GeoPark sees Bare as a key step toward its long-term regional strategy, alongside projects in Colombia and Argentina.
“The incorporation of Bare and higher production at Vaca Muerta in Argentina is expected to potentially increase GeoPark’s production to 75,000-85,000 barrels of oil equivalent per day by 2030, approximately 2.7 times current production levels,” it said in the release.
(Reporting by Deisy Buitrago; Writing by Marianna Parraga; Editing by Anthony Esposito and Mark Porter)