STATOIL AND YPF TO EXPLORE BAJO DEL TORO IN ARGENTINA
Statoil and Argentina’s leading energy company YPF have entered into an agreement to jointly explore hydrocarbons in the Bajo del Toro block in the Neuquén Basin onshore Argentina.
The preliminary agreement (term sheet) between the companies was signed yesterday in Geneva by Statoil’s executive vice president for Exploration, Tim Dodson, and YPF’s vice president for business development & development engineering, Sergio Giorgi.
Statoil will enter the Bajo del Toro exploration permit in the Neuquén Basin as a partner with a 50 % participating interest, with the operator YPF retaining a 50 % interest. As a consideration, Statoil shall recognize to YPF past cost incurred in the block and fund 100% of the cost of certain future activities in the block (promote). The Bajo del Toro exploration block represents a country-entry for Statoil into Argentina. The exploration permit covers an area of 157 km2 (38,800 acres), located in the Neuquén Basin in the west-central part of Argentina. The Vaca Muerta formation is the main target in the basin. In the next few months, the parties will conclude the final agreements. Prior to closing of the deal, the agreements have to be approved by the Neuquén provincial authorities.
In 2016, Statoil signed a technical study agreement with YPF to map exploration opportunities in a large area of the continental slope offshore Argentina.
The Vaca Muerta is a geological formation of 30,000 km² located mainly in the province of Neuquen and containing oil and gas found at a depth of more than 2,500 meters. Argentina’s Neuquén province is the country’s most prolific hydrocarbon basin. The Nequen province is located in the west of the country, at the northern end of Patagonia. According to the U.S. Energy Information Administration, the formation contains 16.2 Bbbl of tight oil (shale oil) and 308 Tcf of shale gas. (Source: Statoil)
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