GeoPark Limited has extended its offtake and prepayment agreement with Vitol through December 31 2028, securing 100 % of crude oil production from the Llanos 34, Llanos 123, and CPO‑5 blocks. Deliveries will begin in January 2026 for Llanos 34 and in May 2026 for the other two blocks, providing the company with a long‑term buyer for all of its Colombian output.
The renewal includes a prepayment facility of up to $500 million, comprising a firm $330 million of committed availability and an option to increase that amount by an additional $170 million. The facility is available until June 30 2027 and carries an interest rate of 7.15 %–7.25 % per annum, a 25‑basis‑point reduction from the prior agreement. This financing flexibility is designed to support GeoPark’s 2026‑2028 capital plan, particularly the ramp‑up in Argentina’s Vaca Muerta basin, without requiring external dilution.
The agreement is expected to restore weighted‑average netbacks to single‑digit levels, comparable to 2020 benchmarks, and improve portfolio realizations by roughly $0.33 per barrel relative to the previous six months. By locking in a buyer for all of its Colombian production, GeoPark reduces market risk, strengthens cash‑flow predictability, and offsets midstream tariff adjustments and inflationary pressures that have compressed margins in recent periods.
The renewal is a material customer win that underpins GeoPark’s two‑engine growth strategy—maximizing core production in Colombia while expanding in new areas such as Vaca Muerta. The long‑term partnership with Vitol, a global energy trader, enhances GeoPark’s competitive position in the Colombian market and provides the financial resilience needed to execute its growth plans.
The extension also signals management confidence in the company’s operational delivery and the viability of its Colombian assets, reinforcing the outlook for sustained revenue visibility and margin improvement through 2028.
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