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Frontera Signs Deal to Supply Crude Oil to Chevron Unit for Up to $120 Million

Business & Policy
December 29, 2025

Frontera Energy’s Colombian unit has signed a prepayment and commercial agreement worth up to $120 million with a unit of U.S. oil major Chevron to supply crude oil over two years, the Canadian oil producer said on Monday.

Under the deal, Frontera will receive an initial $80 million advance and supply a portion of its crude output to Chevron Products Company.

Frontera may seek an additional $40 million advance for up to six months on a fully committed basis.

The agreement replaces an existing prepayment arrangement set to expire at the end of January 2026, Frontera said.

Frontera, based in Calgary, Canada, operates mainly in Colombia and Ecuador. Earlier this year, Guyana’s government cancelled Frontera’s joint venture license with CGX Energy for the Corentyne offshore block.

(Reporting by Yagnoseni Das in Bengaluru; Editing by Sahal Muhammed)