London-listed GeoPark (AIM: GPK) and Korean conglomerate LG announced a new partnership to acquire and develop upstream oil and gas projects in Latin America, the firms said in a joint statement. The companies aim to build a risk-balanced portfolio of upstream opportunities ranging between US$100mn and US$500mn in size. The first acquisition is targeted for 2010.
GeoPark has three producing properties in Argentina and one in Chile, where it is the first and only private oil and gas firm with current production.
"Following our consistent success in Chile, it has been GeoPark's intention to expand into new projects in Latin America. By combining our efforts with the strategic aim and financial and technical muscle of LG, we will be able to accelerate this expansion," GeoPark chairman Gerald E O'Shaughnessy said in the statement.
GeoPark will be the manager of the strategic partnership and operator of acquired projects, according to the statement. The company will have the right to earn additional equity interests in each project.
