Lagos — Frontera Energy Corp. has announced that its Colombian subsidiary has entered a $120 million prepayment and commercial agreement with Chevron Products Company, securing liquidity while committing future crude deliveries.
Under the two-year agreement, Frontera will receive an initial $80 million advance tied to committed crude volumes. The company may also draw an additional $40 million for up to six months on a fully committed basis. The prepayment amounts carry a discount at SOFR plus 4.25%, with repayment beginning after a six-month grace period.
Frontera said proceeds will support working capital and strengthen liquidity. The new agreement replaces a prior prepayment facility expiring at the end of January 2026.
Headquartered in Canada, Frontera holds interests in 20 E&P blocks across Colombia and Guyana, along with pipeline and port infrastructure investments. Its shares trade on the Toronto Stock Exchange under “FEC.”
