Frontera Secures $120 Million Crude Prepayment Deal with Chevron

Frontera Energy has signed a $120 million crude oil prepayment and supply agreement with Chevron, providing near-term liquidity and securing two years of Colombian crude deliveries.

(P&GJ) — Frontera Energy Corp. has signed a $120 million prepayment and commercial agreement with Chevron Products Company covering crude oil deliveries from Colombia.

Under the agreement, Frontera’s Colombian subsidiary will receive an initial $80 million advance and commit to supplying a portion of its crude production to Chevron over a two-year term. The company also has the option to request an additional $40 million advance for up to six months on a fully committed basis.

Prepayment amounts will accrue a financial discount tied to the Secured Overnight Financing Rate (SOFR) plus 4.25% annually, with repayment beginning after a six-month grace period. Frontera said proceeds will be used to support working capital needs and strengthen liquidity.

The new agreement replaces an existing crude prepayment arrangement that is set to expire at the end of January 2026.

Frontera operates upstream and midstream assets across South America, including oil production, pipeline infrastructure and port facilities in Colombia, positioning the deal as a key component of its crude marketing and cash-flow management strategy.