GeoPark to access $500 mln from Vitol in return for oil deliveries

GeoPark

10/05/2024 04:22

May 9 (Reuters) - GeoPark  GPRK.N  has struck a deal to
sell a minimum of 20,000 barrels of oil per day to Dutch
commodities trading firm Vitol, receiving access to up to $500
million in funding in return, the Latin American oil and gas
producer said on Thursday.
    As part of the agreement, Geopark said it will obtain
immediate access to up to $300 million from Vitol and will have
an option to increase the funding by another $200 million.
    Reuters was unable to confirm what the funds will be used
for.
    The deal to sell oil, which comes out of its Colombia
project, will begin on July 1 this year and will last for a
minimum of 20 months, GeoPark said, adding that it is likely to
go up to 36 months.
    The agreement improves GeoPark's price realizations by $0.15
per barrel compared to the current agreement, GeoPark said.

 (Reporting by Chandni Shah in Bengaluru; Editing by Janane
Venkatraman
)
 ((Chandni.shah@thomsonreuters.com;))