Equinor and Shell Acquire Schlumberger Stake in Vaca Muerta Shale Block

Equinor ASA and its partner Royal Dutch Shell Plc have completed the joint acquisition of a 49% interest held by international oilfield services company Schlumberger in the Bandurria Sur Block located in Argentina’s Neuquén province, for a total combined consideration of US$355 million. Argentinian state-controlled YPF owns the remaining 51% interest and is the operator of the block, which covers a total area of approximately 56,000 acres in the central area of the prolific Vaca Muerta shale play. In addition, Equinor and Shell have also reached a preliminary agreement with YPF to acquire a further 11% interest in the block. On completion of this additional transaction, Equinor and Shell will each own a 30% non-operated interest, with YPF owning a 40% interest and continuing as operator. The block is currently in the late pilot phase of development, with currently daily production of around 10,000 barrels of oil equivalent per day.