Equinor expands its cooperation with YPF for offshore exploration in Argentina

August 21, 2019 08:00 CEST
YPF and Equinor signing contract
Tim Dodson (right), Equinor’s executive vice president for Exploration, and Daniel González, YPF’s CEO. (Photo: Ole Jørgen Bratland / Equinor ASA)

Equinor’s executive vice president for Exploration, Tim Dodson, and YPF's CEO Daniel Gonzalez have signed an agreement to jointly explore the CAN 100 offshore block, located in the North Argentinian Basin.

The preliminary agreement, which was signed at Equinor’s office in Oslo, Norway, sets the core terms and conditions for YPF’s transfer of 50% of its share in the CAN 100 offshore block and will enable both companies to expand their alliance and move forward with the exploration process in the Argentinian offshore.

“We are delighted with this opportunity to continue and expand our close partnership with YPF in Argentina. Currently we are partners in two offshore blocks in the same area, and we are jointly exploring onshore opportunities in the Vaca Muerta formation in the Neuquen province. We are looking forward to collaborate closely with YPF on this new exploration opportunity,” says Tim Dodson, Equinor’s executive vice president for Exploration.

“Through this agreement Equinor strengthens its position offshore Argentina, in line with our exploration strategy to access at scale in basins with high impact potential,” Dodson says.

‘We have a strong relationship with Equinor based on mutual trust built on the development of exploration and unconventional projects. This new agreement deepens our bond with Equinor and allows us to learn from their undisputed experience in offshore projects worldwide,’ says Daniel González, YPF´s CEO.

The CAN 100 block comprises an area of 15,000 km2. It is the largest block in the North Argentinian Basin. The first exploratory period of four years began when YPF acquired 100% of the block in May 2019.

Equinor and YPF are currently partners in two offshore blocks in the North Argentinian Basin (CAN 102 and CAN 114), which were added in the last bid round conducted by the Argentinian national government.

In the 1st Offshore Licensing Round in Argentina in April 2019, 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.

Equinor holds a 50% share in the Bajo del Toro Block with partner and operator YPF, following a farm-in agreement signed in January 2018. The Bajo del Toro exploration permit covers 157 square kilometers.

Equinor also holds 90% in the neighbouring Bajo del Toro Este Block as operator with partner Gas y Petróleo de Neuquén (GyP) retaining a 10 % interest.

In August 2019 Equinor entered an agreement with YPF Luz for the development of the Cañadón León onshore wind farm in Santa Cruz in Argentina.

In June 2018 Equinor acquired a 50% interest in the Guañizuil 2A (G2A) solar asset in Argentina.