Shell Farms in to CAN-100 Exploration Block, Offshore Argentina
Royal Dutch Shell Plc has entered into an agreement with Equinor ASA and Argentine state-controlled Yacimientos Petroliferos Fiscales SA (YPF) to acquire a 30% non-operated interest in the CAN-100 exploration block, located offshore in the North Argentinian basin. The financial terms of the transaction have not been disclosed.
CAN-100 covers an area of approximately 15,000 sq. km, and is the largest exploration block in the area. The license is located in close proximity to the CAN-108 block, which is currently 100% operated by Equinor. The block was originally awarded to YPF in May 2019 for an initial 4-year exploration period. Equinor subsequently farmed in to the block in October 2019, acquiring a 50% interest and taking over operatorship from YPF.
Upon completion of the transaction, Equinor will hold a reduced 35% operated interest in the block, with YPF holding a reduced 35% non-operated interest, and Shell holding the remaining 30% interest.
The transaction is subject to customary closing conditions, including the receipt of government approval.