By Dominic Chopping

 

Equinor ASA (EQNR.OS) said Friday that it and Royal Dutch Shell PLC (RDSB.LN) have paid $177.5 million each for the joint acquisition of the 49% interest held by Schlumberger Ltd. (SLB) in the Bandurria Sur onshore block in Argentina's Neuquen province.

Each partner has bought a 24.5% interest in the block that covers around 56,000 gross acres.

The operator is YPF SA (YPF) with a 51% interest and the block is in the late pilot phase of development with current production at around 10,000 barrels of oil equivalent a day.

Equinor and Shell have also reached a preliminary agreement with YPF to acquire a further 11% interest from YPF. On completion of this additional transaction, which is subject to a number of conditions including authority approval, Equinor and Shell will each own a 30% non-operated interest with YPF owning a 40% interest and continuing as operator.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

January 31, 2020 07:04 ET (12:04 GMT)

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