According to official reports in late-January 2020, Equinor and Shell have completed a joint acquisition of 49% participating interest on the Bandurria Sur block from Schlumbergerâs Argentinean subsidiary, SPM Argentina, for USD 177.5 million from each company. State company YPF remains as the operator on the block with 51% stake, while Equinor and Shell each holds 24.5% equity with effective date of 1 January 2020. In a separate transaction, Equinor and Shell have also reached a preliminary agreement to acquire additional 11% interest from YPF (5.5% for each company).  Bandurria Sur block covers 228.5 sq km of land in the Neuquen Embayment part of the Neuquen Basin and located in one of the most active areas of unconventional development in Neuquen Province.  On the southern side, the block is situated directly next to YPF and Chevronâs Loma Campana block where the best producing Vaca Muerta shale oil field of the same name is located. On the eastern side, it is situated directly next to YPFâs La Amarga Chica block where the operator and its Malaysian state partner Petronas are currently in the development phase on their Vaca Muerta shale oil project. In addition, the block shares a border on the western side with Shell and YPF's Bajada de Anelo block, where the state company reportedly intends to develop shale oil in 2020 as part of its 1.6 billion investment plan for 2020 to 2021. Bandurria Sur block itself is currently in the late pilot phase of development that began in 2017 with latest daily production of 8.3 Mbo/d and 15 MMscf/d in December 2019.  Background Information  The Bandurria block was originally held by YPF (operator with 54.54%) with partners Wintershall (27.27%) and Pan American Energy/PAE (18.19%), before it was divided into three areas in July 2015, where YPF then received the designated area of Bandurria Sur with 100% equity before the farm-out to Schlumberger in October 2017. As part of a larger agreement between YPF and the Neuquen Province government in October 2016, YPF received a validity extension to execute a pilot project on the block for five years until July 2020.
Equinor and partner Shell have jointly acquired Schlumberger's 49% in the Bandurria Sur block in the Vaca Muerta play, for US$177,5 MM. YPF holds the remaining 51%, from which 11% is under a prelim. agreement for sale to Equinor and Shell, leading to 30% each. The block is in the late devt pilot phase, currently yielding ab. 10,000 boe/d.