Equinor and Shell strengthen presence in Argentina’s Vaca Muerta
Equinor and its partner Shell have completed a joint acquisition of the 49% interest held by Schlumberger in the Bandurria Sur onshore block in Argentina’s Neuquén Province. The consideration for each partner for their 24.5% interest is $177.5mn.
The block covers around 56,000 gross acres in the central area of the prolific Vaca Muerta play. The operator is YPF (currently with a 51% interest) and the block is in the late pilot phase of development, with a current production of around 10,000 boe/d.
Equinor and Shell have also reached a preliminary agreement with YPF to acquire a further 11% interest from YPF. On completion of this additional transaction, which is subject to a number of conditions including authority approval, Equinor and Shell will each own a 30% non-operated interest, with YPF owning a 40% interest and continuing as operator.
As a result of the completed transaction a former subsidiary of Schlumberger, which holds the 49% interest in the block, is now equally owned by Equinor and Shell.