GeoPark, Methanex Sign Chilean Gas Supply and Development Alliance
GeoPark Holdings Limited has signed a memorandum of understanding with Methanex Corp. for the long-term supply, purchase, and development of natural gas in Chile.
James F. Park, CEO of GeoPark, commented: "This strategic alignment of Methanex and GeoPark strengthens both companies -- by increasing the supply of natural gas in Chile for Methanex and by underpinning the long term development of GeoPark's Chilean natural gas reserves. The agreement will secure an economic long term market for GeoPark's gas production while creating a new source of financing for future investment and an increased opportunity to grow and expand throughout the Southern Cone."
The MOU includes a 10-year gas supply and purchase commitment from GeoPark's Fell Block in southern Chile beginning May 2007. The agreement provides incentives for volume growth up to 100 million cubic feet per day of natural gas and includes provisions for the financing of development operations and the potential joint acquisition of new hydrocarbon blocks in Chile. This agreement is subject to a final contract and required Chilean government approvals.
Methanex's methanol plant site in Chile produces approximately 10% of the world's methanol supply. GeoPark is the only private sector oil and gas producer in Chile and has been supplying natural gas to Methanex in Chile since May 2006.
Bruce Aitken, President and CEO of Methanex commented, "We are delighted with the developing alliance that we have with GeoPark. The MOU represents an alignment of the interests of our two companies and we look forward to a long and successful relationship."
Methanex is a Vancouver based, publicly traded company engaged in the worldwide
production and marketing of methanol. GeoPark is a Latin American oil and gas producer and explorer with properties in Argentina and Chile.
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Company: GeoPark Holdings Limited more info
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