ConocoPhillips has signed an agreement with Wintershall Dea to acquire interest in and jointly develop the Aguada Federal and Bandurria Norte blocks in the central Argentine province of Neuquen. The blocks hold unconventional oil and natural gas resources in the Vaca Muerta shale formation.
ConocoPhillips will acquire a 45% interest share in the Aguada Federal block. Wintershall, as operator, will retain a 45% share in the block (97 sq km). The remaining 10% are held by Gas y Petroleo del Neuquen SA (GYP). ConocoPhillips also will acquire a 50% share in the nearby Bandurria Norte block (105 sq km). Wintershall retains 50% and operatorship.
Wintershall has conducted pilot projects in both blocks and production testing is currently ongoing (OGJ Online, Mar. 17, 2015; May 17, 2017).
The transaction is expected to be closed this year, subject to approval by the relevant authorities.