GeoPark, a leading independent energy company with over 20 years of successful operations across Latin America, has announced the renewal of its offtake and prepayment agreement with Vitol, extending the term and expanding the scope of collaboration across the Llanos basin in Colombia.
The new offtake agreement provides for GeoPark to sell and deliver to Vitol 100% of its crude oil production from the Llanos 34 (operated, 45% WI), Llanos 123 (operated, 50% WI), and CPO-5 (non-operated, 30% WI) blocks, extending the current agreement from its original expiry in June 2027 through December 31, 2028.
The renewed terms restore GeoPark’s weighted-average netbacks to single-digit levels, comparable to 2020 benchmarks, effectively offsetting the cumulative impact of midstream tariff adjustments and inflationary trends over the past five years. Portfolio realizations are expected to improve by approximately US$0.33 per barrel on a weighted-average basis compared to the Company’s average over the past six months, supporting stronger margins and improved cash-flow visibility. The new terms take effect in January 2026, with deliveries beginning in January 2026 for Llanos 34 and in May 2026 for CPO-5 and Llanos 123, and remaining in force through December 31, 2028.
As part of the renewal, GeoPark will have access to a prepayment facility from Vitol that provides for a total of up to $500 million, consisting of a firm $330 million committed availability with an option to increase the availability by up to another $170 million in prepaid future oil sales over the period of the offtake contract. The renewed prepayment facility reflects the strength of GeoPark’s operational delivery in the Llanos basin, and builds on the track record established under the prior agreement.
Amounts under the facility do not constitute a mandatory funding requirement and if drawn can be repaid through future oil deliveries or prepaid at any time without penalty. The interest cost for any drawn amounts is based on a one-month term SOFR risk-free rate plus a margin of 3.50% per annum, representing a 25-bps reduction versus the prior prepayment agreement with Vitol, and, together with the decline in SOFR, would currently be equivalent to an interest rate of approximately 7.15–7.25%(1). Funds committed by Vitol will be made available until June 30, 2027, subject to certain conditions.
The prepayment facility is an integral feature of the improved commercial framework agreed with Vitol, enhancing GeoPark’s financial flexibility and resilience under current market conditions while providing further optionality and certainty of funding to support the execution of the Company’s strategic plans for the 2026–2028 period and beyond.
Vitol is one of the world’s leading energy and commodity companies, and its strong presence and operations in Colombia and Latin America includes a well-established commercial relationship with GeoPark.
(1) Calculated using the One-Month Term SOFR of 3.69% as of January 26, 2026.
Source: GeoPark
