GeoPark Limited operates as a leading independent oil and natural gas exploration and production (E&P) company with operations in Latin America.
The company operates in Colombia, Ecuador and Brazil. The company focuses on Latin America because it is one of the richest and most underexplored hydrocarbon regions globally, with less presence of independent E&P companies compared to the United States and Canada.
The company produced a net average of 36.6 mboepd during the year ended December 31, 2...
GeoPark Limited operates as a leading independent oil and natural gas exploration and production (E&P) company with operations in Latin America.
The company operates in Colombia, Ecuador and Brazil. The company focuses on Latin America because it is one of the richest and most underexplored hydrocarbon regions globally, with less presence of independent E&P companies compared to the United States and Canada.
The company produced a net average of 36.6 mboepd during the year ended December 31, 2023, of which 90.0%, 2.5%, 2.8% and 4.7% were, respectively, in Colombia, Ecuador, Brazil and Chile, and of which 92.9% was oil. As of December 31, 2023, according to the Colombian National Hydrocarbons Agency (ANH), the company was ranked as the second largest oil operator in Colombia, where it made the largest new oil field discovery in the last 20 years.
In 2023, the company drilled and put into production five oil exploration wells in the Llanos 87 and Llanos 123 Blocks.
Assets
The company has a portfolio of assets that includes working and/or economic interests in 34 hydrocarbon blocks, 33 of which are onshore blocks, including 10 in production as of December 31, 2023, and provides the ability to quickly optimize capital allocation as market conditions change. The company's assets give it access to more than 4.7 million gross exploratory and productive acres.
As of December 31, 2023, the blocks in Colombia, Ecuador, Brazil and Chile in which the company has a working interest had 66.2 mmboe of net proved reserves, with 89.9%, 3.5%, 2.3% and 4.4% of such net proved reserves located in Colombia, Ecuador, Brazil and Chile, respectively.
The company produced a net average of 36.6 mboepd during the year ended December 31, 2023, of which 90.0%, 2.5%, 2.8% and 4.7%, were in Colombia, Ecuador, Brazil and Chile, respectively, and of which 92.9% was oil.
2024 Strategy
As part of its strategy, the company continues to monitor the impact of oil price volatility on its results of operations.
Operations
The company has a portfolio of assets that includes working and/or economic interests in 34 hydrocarbon blocks, 33 of which are onshore blocks, including 10 in production as of December 31, 2023.
Operations in Colombia
The company's Colombian assets give it access to 3,401,000 gross exploratory and productive acres across 20 blocks in what to be one of South America's most attractive oil and gas geographies. Since the company entered Colombia in 2012, it has achieved successful exploration and development activities at the company's operated Llanos 34 Block, which as of December 31, 2023, accounts for 66.8% of the company's production and 71.1% of its proved reserves in Colombia.
The company's interests in Colombia include working interests and economic interests. 'Working interests' are direct participation interests granted to the company pursuant to an E&P contract with the ANH, whereas 'economic interests' are indirect participation interests in the net revenues from a given block based on bilateral agreements with the concessionaires.
Eastern Llanos Basin
The Eastern Llanos Basin is a Cenozoic Foreland basin in the eastern region of Colombia. Two giant fields (Caño Limón and Castilla), three major fields (Rubiales, Apiay and Tame Complex) and approximately fifty minor fields had been discovered. The source rock for the basin is located beneath the east flank of the Eastern Cordillera, as a mixed marine-continental shale basinal facies of the Gachetá formation. The main reservoirs of the basin are represented by the Paleogene Carbonera, Guadalupe and Mirador sandstones. Within the Cretaceous sequence, several sandstones are also considered to have good reservoirs.
Llanos 34 Block: The company is the operator of, and have a 45% working interest in, the Llanos 34 Block, which covers approximately 59,085 gross acres (239 sq. km.). The company acquired an interest in and took operatorship of the block in the first quarter of 2012, which at that time had no production, reserves or wells drilled on it, and with 210 sq. km. of existing 3D seismic data on which the company's team had mapped multiple exploration prospects. From 2012 to 2023 the company engaged in exploration and development activities that resulted in 10 new oil fields discoveries and increased proved reserves and oil production up to a peak oil production of 34,995 bopd. Average net production in 2023 was 24,425 bopd and net reserves of 47.1 mmboe. The Llanos 34 Block has three reservoirs: the Guadalupe Formation, which produces 72% of the company's oil production in the Block, Mirador, which produces 26% of the company's oil production in the Block and Gacheta, which produces 2% of its oil production in the Block. During these 12 years of operation in Llanos 34 Block, the company has built all the required infrastructure to produce and manage the fluids of the assets, including 10 production facilities, 81 kilometers of power grid, more than 97 kilometers of flowlines for fluid transfer, 169 kilometers of roads and a 42 kilometers oil pipeline. By the end of 2023, the company has transported more than 72 million barrels of oil from Tigana and Jacana fields through the ODCA pipeline further reducing truck traffic, contributing to the reduction of operational risk, shutdowns (due to road blockades), costs and carbon emissions. In August 2022, the company connected the Llanos-34 Block to the national power grid, reducing the risk of shutdown, cost and carbon emissions. In October 2023, the company entered into an interconnection agreement through which it expects to have an additional 20 megawatts of power energy transmission capacity available for its operations in Llanos 34 Block by early 2025.
The company partners in the Llanos 34 Block is Verano Energy (a subsidiary of Parex), which has a 55% interest. The company operates in the block pursuant to an E&P contract with the ANH.
Llanos 32 Block: The company has a 12.5% working interest in the Llanos 32 Block. The Llanos 32 Block covers approximately 8,556 gross acres (35 sq. km.). Verano Energy is the operator of this block and has an 87.5% working interest. Since 2015, the operator focused on the commissioning of a gas facility on this block to produce natural gas and light crude oil from the Une formation and to facilitate shipment of processed gas south to the adjacent Llanos 34 Block. For the year ended December 31, 2023, the company's average net production in the Llanos 32 Block was 360 bopd.
Abanico Block: In October 1996, Ecopetrol and Explotaciones CMS Nomeco Inc. entered into the Abanico Block association contract. Frontera Energy Colombia Corp is the operator of, and has a 100% working interest in, the Abanico Block, which covers an area of approximately 25,658 gross acres (103 sq. km.). The company does not maintain a direct working interest in the Abanico Block, but rather have a 10% economic interest in the net revenues from the block pursuant to a joint operating agreement initially entered into with Kappa Resources Colombia Limited (now Frontera, who subsequently assigned its participation interest to Cepsa Colombia S.A., who then assigned the interest to Explotaciones CMS Oil & Gas), Maral Finance Corporation and Getionar S.A.
Llanos 86 and Llanos 104 Blocks: The company and Hocol (a subsidiary of Ecopetrol), each with fifty percent (50%) working interest executed an E&P contract over these blocks on July 11, 2019, as a result of the Permanent Competitive Process launched by ANH in 2019. The company is the operator of these contracts that are in their exploratory phase 1 and cover approximately 530,309 gross acres (2,146 sq. km.). Due to the presence of indigenous communities in the area, the company conducted the due prior consultation process with these communities and reached agreements, thereby concluding the process on August 29, 2023.
Llanos 87 Block: The company and Hocol, each with fifty percent (50%) working interest executed an E&P contract over this block on July 11, 2019, as a result of the Permanent Competitive Process launched by ANH in 2019, and the company is the operator of this contract. As a result of the activity performed during the exploratory period, the company made two discoveries in the block: Tororoi and Zorzal. Therefore, the company submitted to the ANH an appraisal program for each of Tororoi and Zorzal, which includes the drilling of one exploratory well during the two-year term ending July 27, 2025.
Llanos 123 and Llanos 124 Blocks: The company and Hocol, each with fifty percent (50%) working interest executed E&P contracts over these blocks on December 20, 2019, as a result of the Permanent Competitive Process launched by ANH in 2019. The company is the operator of these contracts that cover approximately 115,956 gross acres (469 sq. km.).
Llanos 94 Block: On July 24, 2019, the E&P contract was awarded to Parex Energy as a result of the Permanent Competitive Process launched by ANH in 2019. The company acquired a 50% working interest from Parex and obtained ANH's approval to such transfer in May 2020. As a result of an extension in the exploratory period approved by the ANH in 2023, the Phase 1 commitments consist of drilling one exploratory well before October 1, 2025. However, the company is not interested in drilling such prospect and agreed to transfer the company's 50% working interest back to its partner and thus the company is not liable for the exploratory commitment in the block.
CPO-5 Block: On December 26, 2008, the E&P contract was executed between ONGC Videsh, as operator and the ANH as a result of the Competitive Process 'Ronda Colombia 2008'. This contract covers approximately 490,825 gross acres (1,986 sq. km.). The company holds a 30% working interest since the acquisition of Amerisur in 2020. As of December 31, 2023, this contract is in exploratory phase 2 in which the pending commitment corresponds to the acquisition, processing and interpretation of 73 sq. km. There are two commercial fields called Mariposa and Indico, and the company also had successful drilling and putting into production exploration wells in the fields called Flamenco, Halcon and Perico. Average net production in 2023 was 5,563 bopd and net reserves were 6.3 mmboe.
CPO-4-1 Block: On January 18, 2022, the E&P contract was executed between Parex Energy and the ANH as a result of the Permanent Competitive Process launched by ANH in 2019. On April 29, 2022, an amendment to the E&P contract was executed, whereby the ANH approved the assignment of a 50% non-operated working interest to the company. As of December 31, 2023, this contract is in exploratory phase 1 and covers approximately 148,263 gross acres (600 sq. km.).
Magdalena Basin
VIM-3 Block: As of December 31, 2023, the ANH has approved the termination and final liquidation of the contract is in process.
Putumayo Basin:
Coati Block: The company is the operator of and have a 100% working interest in the Coati Block, which covers approximately 61,843 gross acres (250 sq. km.). The evaluation area is suspended. On November 3, 2022, the company submitted to the ANH a request to withdraw from the exploration period of the Coati E&P contract and transfer the pending commitments to other E&P contracts.
Mecaya Block: The company is the operator of and have a 50% working interest in the Mecaya Block, which covers approximately 74,128 gross acres (300 sq. km.). Sierracol Energy is the owner of the remaining 50% working interest. As of December 31, 2023, the contract is in unified phases 1 and 2 of the exploration period, which remaining exploration commitment consists of the acquisition of 52.2 sq. km. Both the unified phases 1 and 2 and the evaluation program are suspended due to force majeure events (relating to prior consultations).
Platanillo Block: The company is the operator of and have a 100% working interest in the Platanillo Block, which covers approximately 27,500 gross acres (111 sq. km.). On September 11, 2009, the company began the commercial exploitation of the Platanillo Block. Average net production in 2023 was 2,103 bopd and net reserves of 3.2 mmboe.
Putumayo 8 Block: The company is the operator of and have a 50% working interest in the Putumayo 8 Block, which covers approximately 102,800 gross acres (416 sq. km.). Sierracol Energy is the owner of the remaining 50% working interest. The contract is in unified phases 1 and 2 of the exploration period. On October 25, 2022, the company submitted to the ANH a request to transfer the investment commitment related to the pending 3D seismic to the Platanillo Block, and the partner reported the transfer of the outstanding committed value to one of its blocks. This transfer of commitments is subject to authorization from the ANH. During 2023, the actions required to obtain environmental licenses were carried out, including holding of a public environmental hearing. As a result, in August 2023, the environmental authority granted the license for the Bienparado project, which was confirmed in January 2024. Additionally, the Nyctibius project public environmental hearing is pending by the environmental licensing authority (Autoridad Nacional de Licencias Ambientales or ANLA).
Putumayo 9 Block: The company is the operator of and have a 50% working interest in the Putumayo 9 Block, which covers approximately 121,453 gross acres (491 sq. km.). Sierracol Energy is the owner of the remaining 50% working interest. As of December 31, 2023, the contract is in phase 1 of the exploration period and outstanding investment commitments. Phase 1 was suspended on June 25, 2019, due to the occurrence of a force majeure event consisting of the issuance of the Municipal Agreement No. 007 of Puerto Guzmán, which prohibits the hydrocarbon exploration and production activities in such municipality.
Putumayo 14 Block: The company is the operator of and have a 100% working interest in the Putumayo 14 Block, which covers approximately 114,560 gross acres (464 sq. km.). On March 10, 2022, the company submitted to the ANH a request to withdraw from the PUT-14 E&P contract and transfer the pending commitments to the Platanillo and CPO-5 Blocks.
Putumayo 36 Block: The company is the operator of and have a 50% working interest in the Putumayo 36 Block, which covers approximately 148,021 gross acres (599 sq. km.). Sierracol is the owner of the remaining 50% working interest.
Tacacho and Terecay Blocks: The company is the operator of and have a 50% working interest in the Tacacho and Terecay Blocks, which covers approximately 589,009 gross acres (2,384 sq. km.) and 586,625 gross acres (2,374 sq. km.), respectively. Sierracol Energy is the owner of the remaining 50% working interest. Both contracts are in phase 1, which is suspended due to the occurrence of force majeure events related to social and public order conditions of the area.
As per farm-out agreement executed on November 21, 2018, Sierracol Energy shall carry the company in certain exploration activities for the Mecaya, PUT-9, Tacacho and Terecay Contracts.
Andaquies, Putumayo 12 and Putumayo 30 Blocks.
Operations in Ecuador
The company's Ecuadorian assets give it access to 33,300 of gross exploratory and productive acres across 2 blocks in an attractive oil and gas geography.
Espejo and Perico Blocks
In May 2019, the company signed participation contracts for the Espejo and Perico Blocks. The company is the operator of the Espejo Block with a 50% working interest, and Frontera is the operator of the Perico Block with 50% working interest. The company has drilled the exploratory wells in the Perico Block (hence Perico Block does not have any pending exploratory commitments) and it has completed the acquisition of 60 sq km of 3D seismic and drilled two exploratory wells in the Espejo Block.
Operations in Brazil
The company's Brazilian assets give it access to 61,400 of gross exploratory and productive acres across 6 blocks (5 exploratory blocks and the BCAM-40 Concession, which is in production phase) in an attractive oil and gas geography.
Manati Field
The company has a 10% working interest in the BCAM-40 Concession, which originally included an interest in the Manati Field, which is located in the Camamu-Almada Basin. Petrobras is the operator of, and has a 35% working interest in, the BCAM-40 Concession, which covers approximately 22,784 gross acres (92.2 sq. km.). In addition to the company, Petrobras' partners in the block are Gas Bridge Storage S.A. and Enauta Energia S.A. (Enauta), with 10% and 45% working interests, respectively. Petrobras operates the BCAM-40 Concession pursuant to a concession agreement with the ANP, executed on August 6, 1998. In September 2009, Petrobras announced the relinquishment of BCAM-40's exploration area within the concession to the ANP, except for the Manati Field.
The Manati Field is located 65 km. south of Salvador, offshore at a water depth of 35 meters. The field was discovered in October 2000, and, in 2002, Petrobras declared the field commercially viable. Production began in January 2007. Wells had been drilled in the Manati Field, 6 of which are productive and connected to a fixed production platform installed at a depth of 35 meters, located 9 km. from the coast of the State of Bahia. From the platform, the gas flows by sea and land through a 125 km. pipeline to the Estação Vandemir Ferreira or EVF gas treatment plant. The gas is sold to Petrobras up to a maximum volume as determined in the existing Petrobras gas sales agreement.
POT-T-785 Concession
The POT-T-785 block covers an area of 7,875 acres in the Potiguar Basin, surrounded by producing fields operated by Petrobras. In 2023, preliminary activities for the environmental licensing have started. As of December 31, 2023, the estimated remaining commitment in the POT-T-785 block amounts to US$0.1 million.
POT-T-834, REC-T-58, REC-T-67 and REC-T-77 Concessions
During ANP's First Open Acreage Bid Round held in September 2019, the company was awarded four exploratory blocks, one in the Potiguar Basin (Block POT-T-834) and three on the RecÔncavo Basin (Blocks REC-T-58, REC-T-67 and REC-T-77). The Concession Agreements were executed in February 2020. In 2023, the company started preliminary activities for the environmental licensing in Block POT-T-834.
Operations in Chile
In December 2023, the company entered into an agreement to sell its Chilean subsidiaries which comprised the entirety of its business in the country. The divestment transaction closed in January 2024 and, as part of the transaction, the company has retained certain rights over unconventional activities that would be carried out in the Fell Block over the operating contract in the future.
Fell Block
In 2006, the company became the operator and 100% interest owner of the Fell Block. When the company first acquired an interest in the Fell Block in 2002, it had no material oil and gas production. Since then, the company completed more than 1,100 sq. km. of 3D seismic surveys and drilled 141 exploration and development wells. In the year ended December 31, 2023, the company produced an average of 1,720 boepd in the Fell Block, consisting of 87.2% gas.
Tierra del Fuego Blocks (Isla Norte, Campanario and Flamenco Blocks)
In 2012, the company entered into three CEOPs with ENAP and Chile granting it working interests in the Isla Norte, Campanario and Flamenco Blocks, located in the center-north of the Tierra del Fuego Province of Chile. The company was the operator of the three blocks, with working interests of 60%, 50% and 50%, respectively.
Operations in Argentina
Puelen Block
On August 20, 2014, the consortium of Pluspetrol and the company was awarded the exploration license in the Puelen Block, as part of the 2014 Mendoza Bidding Round in Argentina, carried out by Empresa Mendocina de Energía S.A. (EMESA). The consortium consists of Pluspetrol (operator with a 72% working interest), EMESA (non-operator with a 10% working interest) and the comapny (non-operator with an 18% working interest).
Los Parlamentos Block
In June 2018, the company announced the acquisition of a 50% working interest in the Los Parlamentos exploratory block in partnership with YPF, the largest oil and gas producer in Argentina. On October 27, 2023, the company agreed to transfer its 50% working interest in the Los Parlamentos Block to YPF and thus, once formally approved by local authorities, the company will no longer be liable to remaining capital commitments or other legal obligations resulting from its participation in the block.
Marketing and Delivery Commitments
The company's production in Colombia consists primarily of crude oil.
During 2023, the company's sales were allocated on a competitive basis to leading industry participants, including traders and other producers. The company continued to deliver at both at well-head and at various points in the Colombian pipeline system and via Ecuador for the Putumayo production.
Ecuador
Ecuador has a well-developed crude oil market with broad access to international markets and an extensive pipeline transportation system. The company's oil production, which began in 2022, is transported through the Ecuadorian pipeline system, with Esmeraldas as the delivery point, and 100% of the company's sales are exported on a competitive basis to industry leading participants including traders, refineries, and other producers.
Brazil
The company's production in Brazil consists of natural gas, condensate and crude oil.
Chile
The company's customer base in Chile was limited in numbers and primarily consists of Chilean National Petroleum Company (ENAP) and Methanex. For the year ended December 31, 2023, the company sold 100% of its oil production in Chile to ENAP and 100% of the company's gas production to Methanex, with sales to ENAP and Methanex accounting for 2% of the company's total revenues.
The company gathered the gas it produced in several wells through its own flow lines and injected it into several gas pipelines owned by ENAP. The transportation of the gas the company sold to Methanex through these pipelines was pursuant to a private contract between Methanex and ENAP. The company does not own any natural gas pipelines for the transportation of natural gas.
Significant Agreements
Colombia
E&P Contracts
The company has entered into E&P contracts granting it the right to explore and operate, as well as working interests in twenty three blocks in Colombia.
Eastern Llanos Basin
Llanos 34 Block E&P Contract: On March 13, 2009, the E&P contract was awarded to Unión Temporal Llanos 34, integrated by GeoPark Colombia S.A.S. with 45%, and Verano Limited with 55% working interest. The Llanos 34 Block E&P contract provides a 24-year exploitation period for each production area, beginning on the date of a commercial declaration. The exploitation period may be extended for periods of up to 10 years at a time if certain conditions are met and subject to ANH approval. As of December 31, 2023, there are production areas for the Max, Túa, Tarotaro, Tigana, Jacana, Chachalaca, Tilo, Chiricoca, Jacamar and Guaco fields.
Llanos 32 Block: The company has a 12.5% working interest in the Llanos 32 Block. Verano Energy is the operator of this block and has an 87.5% working interest. Economic rights to the ANH are similar to those under the Llanos 34 Block.
Abanico Block: In October 1996, Ecopetrol and Explotaciones CMS Nomeco Inc. entered into the Abanico Block association contract. Frontera Energy Colombia Corp is the operator of, and has a 100% working interest in, the Abanico Block. The company does not maintain a direct working interest in the Abanico Block, but rather have a 10% economic interest in the net revenues from the block pursuant to a joint operating agreement initially entered into with Kappa Resources Colombia Limited (now Frontera, who subsequently assigned its participation interest to Cepsa Colombia S.A., who then assigned the interest to Explotaciones CMS Oil & Gas), Maral Finance Corporation and Getionar S.A.
Llanos 86, Llanos 87, Llanos 104, Llanos 123 and Llanos 124 Blocks: The company and Hocol (a subsidiary of Ecopetrol), each with fifty percent (50%) working interest, executed E&P contracts over these blocks in 2019, as a result of the Permanent Competitive Process launched by ANH. The company is the operator of these contracts that are in exploratory phase 1.
Llanos 94 Block: On July 24, 2019, the E&P contract was awarded to Parex Energy as a result of the Permanent Competitive Process launched by ANH in 2019. The company acquired a 50% working interest from Parex and obtained ANH's approval to such transfer in May 2020.
CPO-5 Block E&P Contract: On December 26, 2008, the E&P contract was executed between ONGC Videsh, as operator and the ANH as a result of the Competitive Process 'Ronda Colombia 2008'. The company holds a 30% working interest since the acquisition of Amerisur Resources Limited (Amerisur). As of December 31, 2023, the contract is in phase 2 of the exploration period. There are two commercial fields called Mariposa and Indico, and it also had successful drilling and putting into production exploration wells in the fields called Flamenco, Halcon and Perico.
CPO-4-1 Block: On January 18, 2022, the E&P contract was executed between Parex Energy and the ANH as a result of the Permanent Competitive Process launched by ANH in 2019. On April 29, 2022, an amendment to the E&P contract was executed, whereby the ANH approved the assignment of a 50% non-operated working interest to the company. As of December 31, 2023, this contract is in exploratory phase 1.
Putumayo Basin:
Coati Block E&P Contract: The company is the operator of and have a 100% working interest in the Coati Block. The Coati Block has an evaluation area, declared in September 2006, by the former operator in the southern part of the Block for the Temblon wells (Temblon Evaluation Program), which includes the completion and evaluation of the Coati-1 well. Pursuant to the Coati Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block.
Mecaya Block E&P Contract: The company is the operator of and have a 50% working interest in the Mecaya Block. Sierracol Energy is the owner of the remaining 50% working interest in the contract. As of December 31, 2023, the contract is in unified phases 1 and 2 of the exploration period, and it is suspended due to Force Majeure Events (Prior Consultations).
Platanillo Block E&P Contract: The company is the operator of and have a 100% working interest in the Platanillo Block. Pursuant to the Platanillo Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the Platanillo Block. Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Platanillo Block E&P contract. In accordance with the Platanillo Block operation contract, when the accumulated production of each field, including the royalties' volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.
Putumayo 8 Block E&P Contract: The company is the operator of and have a 50% working interest in the Putumayo 8 Block. Sierracol Energy is the owner of the remaining 50% working interest. The contract is in unified phases 1 and 2 of the exploration period. Pursuant to the Putumayo 8 Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block. Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Putumayo 8 Block E&P contract.
Putumayo 9 Block E&P Contract: The company is the operator of and have a 50% working interest in the Putumayo 9 Block. Sierracol Energy is the owner of the remaining 50% working interest. As of December 31, 2023, the contract is in phase 1 of the exploration period, which is suspended since June 25, 2019, due to the occurrence of a Force Majeure event (issuance of the Municipal Agreement which prohibits the execution of hydrocarbons exploration and production activities in Puerto Guzmán Municipality). Pursuant to the Putumayo 9 Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block. Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Putumayo 9 Block E&P contract.
Putumayo 14 Block E&P Contract: The company is the operator of and have a 100% working interest in the Putumayo 14 Block. On March 10, 2022, the company submitted to the ANH a request to withdraw from the PUT-14 E&P contract and transfer the pending commitments to the Platanillo and CPO-5 Blocks. Once total investment is reached through such transfers, ANH will proceed with the contract's termination. As of December 31, 2023, the total investment needed to fulfill the commitments has already been incurred and the ANH approval is pending.
Putumayo 36 Block E&P Contract: The company is the operator of and have a 50% working interest in the Putumayo 36 Block. Sierracol is the owner of the remaining 50% working interest. The contract is in preliminary phase, which is suspended since April 1, 2020 due to the occurrence of a Force Majeure Event (issuance of the Municipal Agreement which prohibits the execution of hydrocarbons exploration and production activities in Puerto Guzmán Municipality). Pursuant to the Putumayo 36 Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block.
Tacacho and Terecay Blocks E&P Contracts: The company is the operator of and have a 50% working interest in the Tacacho and Terecay Blocks. Sierracol Energy is the owner of the remaining 50% working interest in each E&P contract. The contracts are in phase 1 of the exploration period, which are suspended due to the occurrence of force majeure events related with social and public order conditions of the area. Pursuant to the Tacacho and Terecay Blocks E&P contracts and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the blocks.
Ecuador
The company entered into two production sharing contracts with the Ministry of Energy and Mines.
Brazil
The Brazilian oil and gas industry is governed mainly by the Brazilian Petroleum Law, which provides for the granting of concessions to operate petroleum and gas fields in Brazil, subject to oversight by the ANP.
BCAM-40 Concession Agreement: On August 6, 1998, the ANP and Petrobras executed the concession agreement governing the BCAM-40 Concession, or the BCAM-40 Concession Agreement, following the first round of bidding, referred to as Bid Round Zero, under the regime established by the Brazilian Petroleum Law.
BCAM-40 Consortium Agreement
On January 14, 2000, Petrobras, Queiroz Galvão Perfurações (now Enauta) and Petroserv entered into a consortium agreement, or the BCAM-40 Consortium Agreement, for the performance of the BCAM-40 Concession Agreement. Petrobras is the operator of the BCAM-40 concession, with a 35% participation interest. Enauta, Gas Bridge Storage S.A. and GeoPark Brazil have a 45%, 10% and 10% participation interest, respectively.
Chile
CEOPs
As of December 31, 2023, the company had four Contrato Especial de Operación (CEOPs) in effect with Chile, one for each of the blocks in which it operated, which granted it the right to explore and exploit hydrocarbons in these blocks, determined the company's working interests in the blocks and appointed the operator of the blocks.
Fell Block CEOP: On November 5, 2002, the company acquired a percentage of rights and interests of the CEOP for the Fell Block with Chile, or the Fell Block CEOP, and on May 10, 2006, the company became the sole owners, with 100% of the rights and interest in the Fell Block CEOP.
TDF Blocks CEOPs: In 2012, the company signed 3 CEOPs, together with ENAP, for the Isla Norte, Campanario and Flamenco Blocks, all of them located in Tierra del Fuego (TDF), Magallanes region.
Argentina
The company's exploration permits granted it and its partners the exclusive right to explore for hydrocarbons and declare a commercial discovery within the acreage of its permits. The company's exploration permits were made up of three subperiods, each lasting 3, 2 and 1 year(s), respectively, plus an extension period of up to 5 years.
Customers
During 2023, the oil and gas production was sold to three clients that concentrated 96% of the Colombian subsidiaries' revenue. In Ecuador, 100% of the company's sales were exported on a competitive basis to industry leading participants including traders and other producers. In Brazil, all the company's gas produced in Manati was sold to Petrobras. In Chile, the company's customers were ENAP and Methanex. As of December 31, 2023, ENAP purchased all the company's Chilean oil and condensate production and Methanex purchased all its natural gas production in Chile.
Certain Bermuda Law Considerations
The company has been designated by the Bermuda Monetary Authority as a non-resident for Bermuda exchange control purposes.
Divestiture
In December 2023, the company entered into an agreement to sell its Chilean subsidiaries which included the entirety of its business in the country. The divestment transaction closed in January 2024.
History
The company was founded in 2002 by Gerald E. O'Shaughnessy and James F. Park. The company was incorporated as an exempted company pursuant to the laws of Bermuda as GeoPark Holdings Limited in 2006. The company changed its name to GeoPark Limited in 2013.
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