Equinor, Shell complete Vaca Muerta farm-in, advance additional agreement

Equinor and Shell are increasing activities in Argentina with a joint acquisition of interest held by Schlumberger in the Bandurria Sur onshore block in the country's Neuquén province, and a preliminary agreement with operator YPF.

For Schlumberger's 49% interest in the block, each partner paid $77.5 million for their 24.5% interest.

The block covers 56,000 gross acres in the central area of the Vaca Muerta play. YPF, as operator (51%), is in the late pilot phase of development of the block with current production of 10,000 boe/d.

As a result of the transaction, a former subsidiary of Schlumberger, which holds the 49% interest in the block, is now equally owned by Equinor and Shell.

Equinor and Shell also have reached a preliminary agreement to acquire an additional 11% interest from YPF. On completion of the additional transaction, which is subject to a conditions and authority approval, Equinor and Shell will each own a 30% non-operated interest with YPF owning a 40% interest and continuing as operator.

Equinor participates in eight offshore blocks in Argentina, six as operator. Equinor is also a 50% partner with YPF (operator) in the Bajo del Toro onshore block and has a 90% operated interest in the neighboring blocks Bajo del Toro Este and Aguila Mora Noreste, with Gas y Petróleo de Neuquén (GyP).