GeoPark operations in the Llanos 34 Block. (Source: GeoPark Limited Image Library)
Latin American E&P GeoPark Ltd. signed an offtake and prepayment agreement with energy and commodity company Vitol, according to a May 9 press release.
Under the agreement, GeoPark will sell and deliver to Vitol a minimum of 20,000 bbl/d of oil from the Llanos 34 Block in Colombia, which GeoPark holds 45% working interest.
GeoPark will also obtain immediate access to committed funding from Vitol for up to $300 million, with an option to increase by another $200 million—a total of $500 million in prepaid future oil sales over the contract’s period.
GeoPark expects to improve its price realizations by US$0.15/bbl compared to the current agreement, or by US$0.60/bbl compared to the average price realizations since January 2021, the release stated.
The offtake agreement will start on July 1 and will last between 20 months to 36 months.
Recommended Reading
Oil Prices Ease as US Tariffs On Mexico Paused for a Month
2025-02-03 - WTI crude futures were down $0.04, or 0.01%, at $72.49 after climbing as much as 3.7% earlier in the session to reach their highest since Jan. 24 at $75.18.
Analysts: How Trump's Tariffs Might Affect Commodity, Energy Sectors
2025-02-03 - Trump's move has sparked volatility in the commodities market. Oil prices rose, with WTI up 2.4% at $74.27 a barrel and Brent crude futures adding 1% to $76.40 a barrel.
Stocks Slump, Dollar Soars as Trump Tariffs Trigger Trade War
2025-02-03 - Oil prices rose, with WTI up 2.4% at $74.27 a barrel and Brent crude futures adding 1% to $76.40 a barrel.
Trump Ambiguous Whether Canadian-Mexico Tariffs to Include Oil
2025-01-31 - At a news conference, President Trump said that he would exclude oil from tariffs before backtracking to say that he “may or may not” impose duties on crude.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.