Spanish oil giant Repsol has announced the sale of its Colombian oil and gas production assets to GeoPark for $530 million. This strategic move aligns with Repsol's broader plan to divest up to 4 billion euros worth of assets to finance its investments in renewable energy. The assets sold include Repsol's oil extraction operations in central Colombia and a 25% stake in SierraCol Energia Arauca. These assets have a production capacity of 16,000 barrels of oil equivalent per day.

GeoPark, a leading independent energy company with a strong presence in Latin America, has signed Sale and Purchase Agreements with Repsol Exploración S.A. and Repsol E&P S.A.R.L. The acquisition includes 100% of Repsol Colombia Oil&Gas Limited and a 25% interest in SierraCol Energy Arauca LLC. The transaction is subject to customary conditions and regulatory approvals.

This acquisition is a significant step for GeoPark, enhancing its portfolio in the prolific Llanos Basin, one of Colombia's most productive oil regions. The deal is expected to provide GeoPark with immediate and long-term production, reserves, and cash flow, with low capital investment intensity and significant growth potential. The acquisition will be funded through a combination of cash resources and a non-recourse amortizing debt facility of up to $345 million, arranged by Macquarie Bank Limited.

Repsol's decision to sell these assets is part of its strategy to rotate its asset portfolio and focus on renewable energy investments. The company had previously announced plans to sell assets worth up to 4 billion euros to support this transition. The sale to GeoPark is a key component of this strategy, allowing Repsol to reallocate resources towards sustainable energy projects.