On 16 May 2019, the Argentine government granted AUS-105 block to Equinor following the companyâs offer of USD 15.2 million in Round 1 of the countryâs offshore bid round that ended on 16 April 2019. Equinor will operate the block with 100% participating interest. Work program for the first exploration period is assumed to be limited to seismic work, as there is no drilling commitment required by the government for blocks offered in Round 1 until the second exploration period. 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 AUS-105.    AUS-105 covers 2,118 sq km of area on the continental shelf of Austral Basin with approximated water depth of up to 80 m.   Along with AUS-105, Equinor also received 100%-held operatorship on AUS-106 block in Austral Basin, MLO-121 block in Malvinas Basin, and CAN-108 block in Argentina Basin from Round 1. In addition, the company also won CAN-102 and CAN-114 in Argentina Basin in a partnership with state company 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. An official resolution for granting the exploration permits is expected to be published on 1 August 2019, with official granting of the permits to follow within 15 days.
Equinor ASA received AUS-105 block from Round 1 offshore bid round, Austral Basin