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.

Llanos 34 Block map
A map of GeoPark interests in the Llanos Basin in Colombia, including Block 34. (Source: GeoPark)

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.