On 1 November 2019, the Argentine government granted an exploration permit for MLO-121 offshore block to Equinor with 100% interest through the publication of Resolution 694/2019 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 444 km, 2D seismic reprocessing of 57 km, 3D seismic acquisition and reprocessing of 4,290 sq km, and 2D gravimetry and magnetometry acquisition of 8,580 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.  MLO-121 covers 4,293 sq km of deepwater area (as designated by the Argentine Secretary of Energy) in Malvinas Basin with approximated water depth between 50 to over 100 m. Exploration target for the block is expected to be oil and gas in the Springhill Formation, which has not produced from any fields on the Malvinas Basin side in comparison to the adjacent Austral Basin side where several offshore gas fields are currently producing.  Equinor won the rights for MLO-121 after submitting an offer of USD 66.195 million to edge out a competing offer by a partnership of Eni and Mitsui of USD 42.385 million. Along with MLO-121, Equinor also received 100%-held operatorship on the blocks of AUS-105 and AUS-106 in Austral Basin, as well as CAN-108 block in Argentina 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)