Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Purchase Obligations, Firm Agreements and Leases

As at December 31, 2019, future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows:



	Year ending December 31
	Total		2020		2021		2022		2023		2024		Thereafter
(Thousands of U.S. Dollars)
Oil transportation services	$	3,211	$	3,211	$	—	$	—	$	—	$	—	$	—
Drilling, completions and seismic	21,409		7,602		7,580		6,089		19		20		99
Operating leases ⁽¹⁾	5,679		2,708		1,694		1,277		—		—		—
Finance leases ⁽¹⁾	6,232		2,760		3,192		84		84		84		28
	$	36,531	$	16,281	$	12,466	$	7,450	$	103	$	104	$	127

⁽¹⁾ including maintenance and operating costs

Gran Tierra has operating leases for office spaces and finance leases for water flood facilities and storage tanks and commitments relating to compressors, vehicles, equipment and housing.

Indemnities

Corporate indemnities have been provided by the Company to directors and officers for various items including, but not limited to, all costs to settle suits or actions due to their association with the Company and its subsidiaries and/or affiliates, subject to certain restrictions. The Company has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions. The maximum amount of any potential future payment cannot be reasonably estimated. The Company may provide indemnifications in the normal course of business that are often standard contractual terms to counterparties in certain transactions such as purchase and sale agreements. The terms of these indemnifications will vary based upon the contract, the nature of which prevents the Company from making a reasonable estimate of the maximum potential amounts that may be required to be paid.

Letters of Credit

At December 31, 2019, the Company had provided letters of credit and other credit support totaling $120.6 million (December 31, 2018 - $76.7 million) as security relating to work commitment guarantees contained in exploration contracts in Colombia and Ecuador and other capital or operating requirements.

Contingencies

Gran Tierra has a number of lawsuits and claims pending including a dispute with the ANH relating to the calculation of HPR royalties. Although the outcome of these other lawsuits and disputes cannot be predicted with certainty, Gran Tierra believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs as they are incurred or become probable and determinable.