Colombia’s Richest Man Turns Venezuelan Oil Contract Into $500 Million GeoPark Stake

Colombian billionaire Jaime Gilinski is positioned to take control of GeoPark Ltd., a Latin American energy producer, after converting a Venezuelan oil agreement secured at almost no upfront cost into an equity stake initially valued at more than $500 million, according to Bloomberg.

The transaction illustrates the competition for Venezuelan assets following Nicolás Maduro’s removal in January and Washington’s subsequent relaxation of energy sanctions. Investors with government connections are moving quickly into a country whose enormous oil reserves have suffered from years of mismanagement, sanctions and inadequate investment.

Bloomberg writes that Gilinski, worth approximately $40 billion according to Bloomberg, made his fortune in banking and acquisitions, including his takeover of food manufacturer Nutresa SA. His son Gabriel reportedly visited Caracas more than ten times this year, meeting with acting President Delcy Rodríguez in March while pursuing opportunities in Venezuela’s energy sector.

Those efforts resulted in a 25-year agreement to operate Bare, a heavy crude field in Venezuela’s Orinoco region. Located near existing Chevron facilities, the property could benefit from established infrastructure.

Shortly after securing the contract, Gilinski arranged to transfer his interest to GeoPark in exchange for newly issued shares initially worth approximately $515 million. The transaction would make him the company’s majority shareholder despite requiring little personal investment in the underlying project.

GeoPark would finance development and retain a 65% net working interest, with the remaining 35% belonging to state-owned PDVSA. The company hopes to increase production from approximately 11,000 barrels per day to 95,000, although achieving that target will require substantial spending and access to materials needed to transport Venezuela’s unusually thick crude.

Gilinski had already acquired approximately 20% of GeoPark in March, effectively disrupting a competing takeover attempt. Rather than negotiating the Venezuelan agreement entirely through GeoPark, however, he secured most of the operating rights separately before offering them to the company.

GeoPark says it participated in the negotiations and initially held a 5% interest in Bare. The company is now seeking to acquire Gilinski’s remaining 95% at a valuation reportedly 5% below estimates prepared by its advisers.

The deal remains subject to conditions that must be satisfied by December. If the underlying Venezuelan contract expires before completion, the GeoPark transaction will be canceled.

Gilinski is hardly alone in pursuing Venezuela’s reopening. Pacific Coast Energy has begun operating two heavy oil properties, while newcomers including Coinbase co-founder Fred Ehrsam have negotiated agreements. Established players such as Chevron and Repsol remain active as other international producers consider returning.

For Gilinski, the arrangement could deliver an extraordinary return: majority control of an established energy company in exchange for oil development rights obtained with minimal upfront capital, while GeoPark assumes the financial burden of expanding production.