Shell, Equinor buy Schlumberger's stake in Argentina

- Partners buy Schlumberger's 49% stake in Bandurria Sur

Equinor and its partner Shell completed a joint acquisition of the 49% interest held by Schlumberger in the Bandurria Sur onshore block in Argentina’s Neuquen province, Equinor announced on Monday.

The consideration for each partner for their 24.5% interest is $177.5 million.

The block covers around 56,000 gross acres in the central area of the prolific Vaca Muerta play.

The operator is Argentina's 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 barrels of oil equivalent per day.

Equinor and Shell have also reached a preliminary agreement with YPF to acquire a further 11% interest from it.

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.

Equinor participates in eight offshore blocks in Argentina, of which six as an operator.

By Murat Temizer

Anadolu Agency

energy@aa.com.tr