On 1 November 2019, the Argentine government granted an exploration permit for CAN-108 offshore block to Equinor with 100% interest through the publication of Resolution 691/2019 in the nationâs official gazette following the preliminary award of the block in May 2019 as a result of the Argentina Round 1 offshore bid round. Work program in the first exploration period of four years consists of 2D seismic acquisition of 443 km, 3D seismic acquisition of 1,000 sq km, and 2D gravimetry and magnetometry acquisition of 2,000 km, followed by a drilling commitment for one well in the second exploration period of another four years. An optional third exploration period of five years is possible, although accompanied by a 50% partial relinquishment.   CAN-108 covers 2,882 sq km of ultra-deepwater area (as designated by the Argentine Secretary of Energy) in Argentina Basin with approximated water depth between 2,000 to 4,000 m. The block was formerly part of state company YPFâs E-1 block (or ENARSA 1) before it was reduced in late-2017/early-2018 prior to the bid round. The area is relatively unexplored with no discoveries or significant wells other than two wells that were drilled and P&Aâd with oil & gas shows by Union Texas in CAN-109 in the mid-1990âs.  Equinor won the rights for the block after submitting an offer of USD 16.17 million at the end of offshore Round 1 in April 2019. Along with CAN-108, the company also received 100%-held operatorship on the blocks of AUS-105 and AUS-106 in Austral Basin, as well as MLO-121 block in Malvinas Basin. In addition, the company won CAN-102 and CAN-114 in Argentina Basin in a partnership with YPF, along with MLO-123 block in Malvinas Basin as part of a consortium with YPF and operator Total.  Background Information  The Argentine government published Resolution 276/2019 on 16 May 2019 to award 18 blocks in Austral, Malvinas, and Argentina Basin from its Round 1 of its offshore bid round with a total committed investment of USD 724 million. Granting of exploration permits from the round was originally expected to be published in early-August 2019 with signing of the permits to follow within 15 days.
Equinor has been formally awarded more rights it won in Argentina's 1st offshore round earlier this year: Austral Basin: AUS-105 (2,157 sq km) + 106 (2,283 sq km, see also DEA 5 Nov)