Equinor, Shell Buy into Argentine Shale Block
Norway’s Equinor and Anglo-Dutch Shell have bought US oil services giant Schlumberger's 49% stake in the onshore Bandurria Sur block in Argentina’s Vaca Muerta shale oil and gas play.
In a statement on January 31, Equinor said each partner had taken a 24.5% interest in the project for $177.5mn, with effect from January 1. The remaining 51% interest is held by Argentina’s state-owned YPF, the operator.
Bandurria Sur spans 227 km2 of Vaca Muerta’s centre, and currently flows 10,000 barrels of oil equivalent/day under a late pilot phase of development. Equinor and Shell have also struck a preliminary deal to acquire a further 11% in the block from YPF.
Equinor also has a 50% in the YPF-operated Bajo del Toro onshore block in Argentina, and operates the neighbouring Bajo del Toro Este and Aguila Mora Noreste blocks with a 90% stake, joined by partner Gas y Petroleo de Neuquen (GyP, with 10%).
The Norwegian producer is involved in a further eight offshore blocks in Argentina, six of which it operates.