On 17 January 2018, official reports indicated that Statoil has entered into definitive agreements with state company YPF for the exploration and development of Vaca Muerta Formation shale in the Bajo del Toro block, pending authorization from the government of the Neuquen Province. The announcement came following the original preliminary deal that was signed between the companies in August 2017. Bajo del Toro block covers 157 sq km of onshore land in the Northeast Platform of the Neuquen Basin, and adjacent to the Bajo del Toro Este concession where Statoil is already the operator with 90% interest along with partner provincial company GyP Neuquen (10%).Â  Statoil received the official award for Bajo del Toro Este in November 2017 from the Neuquen Province government following the Neuquen V Bid Round, with the commitment to drill one exploration well in the same objective of Vaca Muerta shale within the four-year exploration period. According to the latest agreement, work program in the block is set to include the development of two horizontal wells in the first phase, followed by six horizontal wells in the second. Statoil will pay USD 30 million dollars to acquire 50% participating interest in the block, along with 100% of the costs and investments required by the program for up to USD 270 million.
Statoil entering the country through a stake in the Bajo del Toro exploration permit as a partner with a 50 % participating interest, with the operator YPF retaining a 50 % interest.