Canadian oil producer Frontera Energy Corp has secured a major supply agreement with a subsidiary of U.S. oil giant Chevron worth up to $120 million over the next two years.

Under the deal, Frontera’s Colombian unit will receive an $80 million upfront payment and commit to delivering a portion of its crude oil output to Chevron Products Company. The arrangement also allows Frontera to request an additional $40 million advance for up to six months if needed.

This new agreement replaces a previous prepayment contract that was scheduled to expire at the end of January 2026. Frontera, headquartered in Calgary, primarily operates in Colombia and Ecuador. Earlier this year, Frontera faced a setback when Guyana’s government revoked its joint venture license with CGX Energy for the Corentyne offshore block.

The company said the partnership with Chevron ensures a stable buyer for its crude and strengthens its financial position amid market uncertainties.