Latin America-focused energy company GeoPark has announced its strategic entry into Venezuela, adding to the rush of firms lining up to tap the country's vast oil reserves.

U.S.-listed GeoPark's entry is centered on the Bare Block, a heavy oil asset in Venezuela's petroleum-rich Orinoco belt, and involves terms under which Colombian conglomerate Grupo Gilinski is to set indirectly acquire control of the company.

GeoPark said the transaction is immediately value-accretive for shareholders, and that redeveloping the block can significantly enhance long-term value creation for the company.

Bare has about 15.7 billion barrels of oil in place, with gross production of about 11,000 barrels a day and peak potential of up to 95,000 barrels.

The redevelopment plan contemplates net production of about 400 million barrels for GeoPark, with significant remaining potential yet to be captured.

Bare's redevelopment can also contribute to Venezuela's energy sector reactivation and broader economic rebuilding, the company added.

"Venezuela's energy sector reactivation represents one of Latin America's most important industrial opportunities," Chief Executive Felipe Bayon said.

A string of deals this week indicates that the floodgates to Venezuela's long moribund oil energy industry are open. The Trump administration is pushing to revitalize the South American country's energy sector since ousting strongman Nicolás Maduro in January.

Chevron, ENI and GE Vernova are among the companies that signed deals this week in Caracas to funnel billions into Venezuela's oil fields.

The Bare redevelopment was agreed under a 25-year production participation contract framework with Venezuelan state oil company PDVSA Petroleo SA.

The transaction structure includes an initial 5% GeoPark participation in the holding company that executed the contract, followed by the acquisition of Grupo Gilinski's 95% interest via the issuance of shares at $12.22 apiece.

GeoPark financed the transaction with equity to preserve its financial position, which includes around $700 million of liquidity and financing sources, and about $310 million cash on hand.

After the issuance, Grupo Gilinski--led by billionaire Jaime Gilinski--is expected to hold about 56.3% of GeoPark's outstanding common shares. Potential improvements in the project's contractual conditions could raise ownership to about 58.4%.

The transaction was approved by the board of GeoPark, which will continue to operate as an NYSE-listed company with a majority independent board.