Argentina

Argentina’s unconventional oil and gas resources are among the world’s largest. Vaca Muerta is a geological formation in the Neuquén basin covering 30,000 square kilometres, containing oil and gas at a depth of more than 2,500 metres below the surface. Equinor is a partner in the Bandurria Sur and Bajo del Toro licences.

Bandurria Sur

Equinor entered the licence in 2020 and holds a 30% non-operated interest. YPF as the operator has a 40% interest and Shell, as non-operated partner, holds the remaining 30% equity interest.

The block is in the early development phase with a current production of around 25,000 barrels of oil equivalent per day from 50 producer wells. It covers around 228.5 square kilometres (56,000 acres) located in the core area of the prolific Vaca Muerta play. Future development includes drilling 300-500 additional wells and building an oil central processing facility with capacity of 75,000 barrels of oil per day.

Bajo del Toro

In August 2017, Equinor and, Argentina’s leading energy company YPF entered into an agreement to jointly explore hydrocarbons in the Bajo del Toro block. Equinor holds a 50% interest and YPF, as the operator, has the remaining 50%. The Bajo del Toro licence covers an area of around 157 square kilometres (38,800 acres) in the northern area of Vaca Muerta. The area has light oil potential.

In 2021, the partners obtained new concessions from the province of Neuquén. The new agreements split the licence in two areas, Bajo del Toro Norte covering 113.8 square kilometres with an exploitation licence of 35 years and, Bajo del Toro, with the remaining 43 square kilometres with a four-year exploration licence extension. The next steps in Bajo del Toro Norte will be a pilot programme of 14 wells.