With this operation, the Spanish firm will reduce its net debt by approximately US$ 500 million.
Repsol has reached an agreement to sell its oil and gas assets in Colombia to GeoPark for a total of US$530 million (500.7 million euros), the two companies announced on Friday.
The agreement includes GeoPark's acquisition of 100% of Repsol Colombia O&G Limited, which holds a 45% interest in Block CPO-9 in the Department of Meta (operated by Ecopetrol with a 55% interest), as well as Repsol's 25% interest in SierraCol Energy Arauca, which manages the Llanos Norte asset in the Department of Arauca.
In a statement to the National Securities Market Commission (CNMV), the group led by Josu Jon Imaz indicated that this transaction is part of its asset portfolio rotation strategy and estimated that the operation will reduce its net debt by around US$ 500 million (around 473.4 million euros) as a result of the cash obtained.
At the end of September, Repsol's net debt stood at €5.532 billion, €937 million more than the figure at the end of June this year.
AN IMPACT OF -123 MILLION ON ITS 2024 INCOME STATEMENT.
Repsol also noted that this transaction will have an effect of - US$ 130 million (approximately 123 million euros) on the profit and loss account for the 2024 financial year, which will be adjusted according to the final data at the time of the transfer of the assets, foreseeably in the first quarter of 2025.
In the first nine months of this year, Repsol had already divested assets totalling 544 million euros, including the sale by bpTT, in which the company chaired by Antonio Brufau holds a 30% stake, of several mature offshore gas fields in Trinidad and Tobago to Perenco, and the sale by Repsol Ibereólica Renovables, a company owned 50% by the group and Ibereólica, of its solar assets in Chile to Grenergy.
The transaction is subject to compliance with certain conditions precedent that are customary in this type of transaction, including the corresponding approvals and the preferential right of first refusal by Repsol's current partners in the projects included in the agreement.
GeoPark, for its part, stressed that this acquisition means incorporating into its portfolio "high-quality" assets located in the Llanos Basin, one of the most productive oil regions in Colombia, where GeoPark is already an established operator.
"This acquisition fits firmly into GeoPark's growth strategy, securing access to large, competitively advantageous assets and proven large basins to build and deliver a highly profitable, reliable and sustainable oil and gas portfolio across Latin America," the company said.
"Repsol's portfolio in Colombia will provide immediate and long-term production, reserves and cash flows, with low capital investment intensity, significant low-risk growth potential and exploration potential," GeoPark added.
The transaction will be financed by GeoPark through a combination of cash and debt resources, including a non-recourse amortising credit facility of up to US$345 million (326 million euros), led and arranged by Macquarie Bank.
