Geopark bet for Chile and will allocate about 60% investment in the country
As explained by James Park, CEO of the company, independent of the reforms discussed their plans are long term.
Geopark is a rather particular company: although Chile is not a country rich in hydrocarbons, they decided to lay the foundation for the company’s exploration and production (E & P) of oil and gas.
Moreover, while much of the foreign capital are leaving emerging markets to re-invest in the U.S. and other developed economies and in the country the tax reform discussion continues, the company remains committed to Latin America, especially Chile.-
As James Park, CEO and co-founder of Geopark explained, this year will invest $ 150 million in the country, specifically in Magallanes for new wells.
“We’re going to drill some 35 new wells, and we have very good prospects in the opportunities out there. We have found a new formation, which is a type of volcanic rock, which is very interesting, and it has oil. Historically had not thought of this area as an asset; but that’s what happens when you know that a basin is good, and if you invest can be produced without problems, “he said.
When he was asked about whether the tax reform is concerned, Park said that “these projects are long term and that does not change. Displaying continued growth for many years, we are confident”.
Bet on the southern zone
Magallanes has been the region chosen by Geopark, which is also a member of ENAP, to carry out their operations.
According to what the executive explains, the southern basin has oil and gas, and this-the area that are currently exploring–contains more gas. “We also believe that there is significant potential,” he said. What is confirmed with U.S. $ 1,000 million invested in the last seven years in that region. With this amount, the company represents about 12% to 14% of Gross Domestic Product (GDP) regional and a higher percentage of total mining and hydrocarbon being done in the area.
Proceed to Latam
Regarding the region, currently the company has operations in Brazil, Chile and Colombia, “and we also want to enter Peru, plus we’re in talks to do the same in Mexico,” said the executive.
Regarding the outflow of foreign capital in the region, the geophysicist said that makes the moment even better to put your chips in South America. “There are many opportunities, it’s a great time to move on, because there is less competition. In the U.S. and Canada there are 9,000 or 10,000 independent companies, and throughout Latin America we are very few, so it is a very attractive region”, he said.
Source: Diario Financiero
