Hernando Padilla and Sandra Manrique

PPU advises Vitol on crude oil sale and purchase agreement with GeoPark

Philippi Prietocarrizosa Ferrero DU & Uría Colombia has advised Vitol Colombia on a prepaid crude oil sale and purchase agreement for up to USD $500 million entered into with GeoPark Colombia. Cuatrecasas acted as advisor to GeoPark.

The transaction contemplates Vitol acquiring a minimum of 20,000 bopd of production from the Llanos 34 Block and providing financing to GeoPark on a ‘prepaid sales’ basis for up to USD 300 million, with an option to increase a further USD 200 million to a total of USD 500 million.

The deal also involved in-depth knowledge and analysis of the functioning of the oil and gas industry and market in Colombia, in particular to identify operational risks related to the transportation, marketing and final destination of crude oil.

Cuatrecasas’ team included Manuel Quinche, Manuel Gómez, María Mónica Latorre, Marcos Díaz and Santiago Jaramillo Ochoa.

PPU’s team was led by partners Hernando Padilla (pictured left) and Sandra Manrique (pictured right), with support from partner Héctor Ramirez, and associates Juan Pablo Gutiérrez, Carolina Vargas, Daniel Vargas, Neider Londoño and Fong Tan Kuang.

L Giselle Estrada