GeoPark Signs Offtake and $100 Million Funding Agreement with Trafigura
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GeoPark Limited has executed an offtake and prepayment agreement with Trafigura, one of the world’s leading commodity trading and logistics companies.
“We are pleased to begin this strategic partnership with Trafigura and look forward to a long term relationship. Trafigura’s world-class trading and commodity expertise will be an important complement to our operations and continuing expansion in Latin America. Three key pillars of our success in managing through the current oil market headwinds are the quality and durability of our assets, the experience and track-record of our team, and our financial strength and resilience,” said James F. Park, CEO of GeoPark.
“The partnership with Trafigura further strengthens our balance sheet by improving our bottom-line netbacks, reducing oil marketing risks, and providing a bigger and more solid liquidity cushion,” added Park.
The offtake agreement provides for GeoPark to sell and deliver to Trafigura a portion of GeoPark’s Colombian crude oil production and will benefit GeoPark by improving crude oil sales prices; improving operating netbacks by reducing transportation costs; simplifying logistics and reducing risks; and improving working capital. Pricing will be determined at future spot market prices, net of transportation costs.
As part of the transaction, GeoPark and Trafigura have also entered into an agreement which provides GeoPark access to funding up to $100 million, subject to applicable volumes corresponding to the terms of the agreement, in the form of prepaid future oil sales. Funds committed by Trafigura will be made available to GeoPark upon request and will be repaid by GeoPark, through future oil deliveries over the period of the contract (2.5 years with a six-month grace period).
About GeoPark Limited
GeoPark is a Latin American oil and gas explorer, operator and consolidator with oil and gas assets and growth platforms in Chile, Colombia, Brazil, Peru and Argentina.
To stop by GeoPark’s websiste, CLICK HERE
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