GeoPark, an oil and gas explorer in Latin America, has entered into an offtake and prepayment agreement with energy and commodities company Vitol.  

This deal pertains to the sale and delivery of a minimum of 20,000 barrels of oil per day (bopd) from the Llanos 34 block in Colombia. 

As part of the agreement, GeoPark will gain immediate access to up to $300m in funding from Vitol, with an option to increase this to $500m in prepaid future oil sales over the contract period. 

GeoPark holds a 45% working interest and operates the Llanos 34 block. 

The Llanos 34 block is one of Colombia's largest oil discoveries in more than two decades. 

It encompasses 13 oil fields including Tigana and Jacana, which rank among the top ten producing fields in the country. 

GeoPark's agreement with Vitol is set to enhance its price realisations by $0.15 per barrel compared with the current agreement, and by $0.60 per barrel against the average realisations since January 2021. 

Scheduled to commence on 1 July 2024, the offtake agreement will last for a minimum of 20 months, with the possibility of an extension up to 36 months.  

Vitol has committed to making the funds available until 30 June 2025, subject to certain conditions.  

GeoPark can repay amounts drawn from this facility through future oil deliveries or prepay them at any time without penalty.  

Last month, GeoPark announced plans to acquire a non-operated interest in unconventional blocks within Argentina's Neuquen Basin.  

GeoPark said the acquisition is in line with its strategy to expand its footprint in Latin America's oil and gas sectors.