Equinor, YPF expand joint agreement for exploration off Argentina

Equinor and YPF have signed an agreement to jointly explore the CAN 100 block in the North Argentinian basin offshore Argentina.

The agreement sets core terms and conditions for YPF’s transfer of 50% of its share in the CAN 100 block and “will enable both companies to expand their alliance and move forward with the exploration process in the Argentinian offshore,” the companies jointly said.

Currently, Equinor is partners with YPF in two offshore blocks—CAN 102 and CAN 114—in the same area and the companies are also jointly exploring onshore in the Vaca Muerta formation in Neuquen province, said Tim Dodson, Equinor executive vice-president for exploration.

The CAN 100 block covers an area of 15,000 sq km and is the largest block in the North Argentinian basin. The first exploratory period of 4 years began when YPF acquired 100% of the block earlier this year in the Argentina’s first offshore licensing round (OGJ Online, Apr. 29, 2019).

During that round, Equinor submitted the winning bids for five blocks as operator and participated in winning bids for one block to be operated by YPF and one block to be operated by Total SA.

Equinor holds a 50% share in the Bajo del Toro block with partner and operator YPF, following a farmin agreement signed in January 2018. The Bajo del Toro exploration permit covers 157 sq km.

Equinor also holds 90% in the neighboring Bajo del Toro Este block as operator with partner GyP retaining a 10% interest.