Vitol has signed an settlement for no less than 20,000 barrels of oil per day (bopd) from GeoPark Ltd’s Block Llanos 34 onshore Colombia.
“The offtake settlement will begin on July 1, 2024, for at least 20 months and as much as 36 months”, the Latin American oil and gasoline exploration firm stated in a press launch.
With 13 oilfields found within the block, Llanos 34 within the first quarter of 2024 reached its highest manufacturing price in 12 months at 56,000–57,000 bopd gross, based on the April 25 quarterly monetary report of the Bogota-based operator. Llanos 34’s common output within the January–March 2024 interval was 53,001 bopd gross.
“As a part of this transaction, GeoPark will acquire instant entry to dedicated funding from Vitol for as much as $300 million, with an possibility to extend by one other $200 million for a complete of $500 million, in pay as you go future oil gross sales over the interval of the offtake contract”, the announcement acknowledged. “Funds dedicated by Vitol will likely be made obtainable till June 30, 2025, topic to sure circumstances.
“Quantities drawn on this prepayment facility may be repaid by future oil deliveries or pay as you go at any time with out penalty. The curiosity price is predicated on a SOFR [secured overnight financing rate] risk-free price plus a margin of three.75 p.c each year”.
GeoPark stated, “The settlement improves GeoPark’s worth realizations by 15 cents (USD) per barrel vs the present settlement, or by 60 cents (USD) per barrel vs the typical worth realizations from January 2021 thus far”.
GeoPark’s web confirmed and possible reserves in Llanos 34 elevated to 88 million barrels of oil equal in 2022 from zero in 2012, when it acquired the block, based on a GeoPark report December 2023. Accounting for eight p.c of Colombia’s petroleum output, Llanos 34 is the nation’s third-biggest hydrocarbon manufacturing block, based on GeoPark, which holds a forty five p.c working curiosity within the block.
Having drilled two horizontal wells in Llanos 34 within the first quarter, GeoPark plans to drill two to a few extra wells this 12 months.
In the meantime, power trading-focused Vitol plans to boost its refined oil product gross sales this 12 months to eight,800 bpd, up by 1,500 bpd from final 12 months, chief government Russell Hardy stated in an announcement March 26, 2024.
“In rising demand facilities, we’re persevering with to produce and spend money on infrastructure, from refining in Asia, to storage and an increasing retail footprint throughout Africa, as our downstream firm Vivo Vitality works in direction of finishing its acquisition of Engen South Africa”, Hardy stated within the assertion shared on Vitol’s web site. “Equally, our Turkish downstream firm, Petrol Ofisi, is aiming to accumulate BP’s downstream enterprise in Turkey. On completion, Vitol will likely be invested in circa 9,000 service stations worldwide”.
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