On 28 October 2019, the Argentine government granted an exploration permit for AUS-106 block to Equinor through the publication of Resolution 676/2019 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 32 km, 3D seismic acquisition of 1,500 sq km, and 2D gravimetry and magnetometry acquisition of 3,000 km, followed by a drilling commitment for one well in the second exploration period of three years. An optional third exploration period of four years is possible, although accompanied by a 50% partial relinquishment. Equinor will operate the block with 100% participating interest.  AUS-106 covers 2,279 sq km of areas, respectively, on the continental shelf of Austral Basin with approximated water depth of up to 80 m. Exploration target for the block is expected to be oil and gas in the Springhill Formation. The formation has been proven to be a producer in several gas fields in the Austral Basin, although no discoveries have been made in the area of AUS-106.  Equinor won the rights for the block after submitting an offer of USD 22.87 million in Round 1 of the countryâs offshore bid round that ended on 16 April 2019. Â Beside AUS-106, Equinor also received 100% operatorship on the adjacent AUS-105 block, along with MLO-121 block in Malvinas Basin and CAN-108 block in Argentina Basin. In addition, the company won CAN-102 and CAN-114 in Argentina Basin in a partnership with state company YPF, as well as 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.
On 28 October 2019, the Argentine government granted an exploration permit for AUS-106 block to Equinor 