On 2 November 2019, the Argentine government granted an exploration permit for MLO-123 offshore block to a consortium of Total, state company YPF, and Equinor through the publication of Resolution 695/2019 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. Total operates the block with 37.5% interest, followed by YPF with 37.5%, and Equinor with the remaining 25% stake. Work program in the first exploration period of four years consists of 2D seismic acquisition of 720 km, 2D seismic reprocessing of 1,393 km, 3D seismic acquisition and reprocessing of 3,000 sq km, and 2D gravimetry and magnetometry acquisition of 6,000 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.  MLO-123 covers 3,789 sq km of deepwater area (as designated by the Argentine Secretary of Energy) in Malvinas Basin with approximated water depth of up to 180 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.  The consortium of Total, YPF, and Equinor won the rights for MLO-123 after submitting an offer of USD 44.465 million. Along with MLO-123, Total also received 50% interest and operatorship in a partnership with BP on CAN-111 and CAN-113 blocks in Argentina Basin from Round 1.  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)