Shell Farms Into Offshore Block in Argentina

Bartolomej Tomic
Thursday, January 14, 2021

Oil and gas giant Shell has agreed to farm into the CAN 100 block, offshore Argentina, currently jointly owned by the Norwegian energy firm Equinor and Argentina's YPF.

In October 2019, Equinor farmed into the YPF CAN 100 block and agreed to take over the operatorship. 

Equinor and YPF have agreed with Shell to jointly farm-down 30% non-operated interests in the CAN 100 block, offshore Argentina.

Equinor and YPF currently both hold 50% equity in the license and will, after the transaction, hold 35% each, with Shell holding the remaining 30% in the block.

The CAN 100 block covers 15,000 km2 and is the largest block in the North Argentinian Basin. 

The agreement is pending governmental approval, Equinor said in a statement, without sharing info on the transaction's financial terms.

Offshore Engineer reached out to Equinor, seeking more info on the financial terms, as well as on the planned work at the offshore block.

An Equinor spokesperson said: "We will not comment on any financial details in the agreement. Our focus is now to continue to develop our subsurface understanding and we will continue to mature our work program as per our license commitments."

"The license is covered by 2D seismic as well as a 2,200km2 3D survey. The commitment in this first exploration period is to acquire 1,500 km2 of 3D seismic," the spokesperson added.

Categories: Energy Activity South America

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