Majors Scoop Up Acreage In Offshore Argentina Bid Round

Oil and Gas offshore platform

Units of ExxonMobil, Equinor, and Wintershall were among the companies that submitted winning bids in Argentina’s Apr. 16 licensing round—the first open bid round for Argentinean offshore acreage in more than 20 years—where 38 blocks were on offer, 18 of which were licensed.

The round attracted bids from 13 companies, with the winning bids totaling $718.28 million, according to Wood Mackenzie. “All majors participated in the bidding, aside from Chevron,” WoodMac said in a press note.

The exploration blocks offered during the public tender were in shallow, deep, and ultradeep water in the Austral, North Argentina, and Malvinas West basins.

ExxonMobil Argentina Offshore Investments BV and an affiliate of Qatar Petroleum were awarded three exploration blocks in the Malvinas basin, some 320 km offshore Tierra del Fuego.

ExxonMobil will operate Blocks MLO-113, MLO-117, and MLO-118 with 70% working interest. A QP affiliate will hold the remaining 30%. The initial work program will include 3D seismic data acquisition.

“This potential play-opening opportunity will allow ExxonMobil to use its unique exploration capabilities and expertise as it evaluates this new acreage,” said Mike Cousins, senior vice-president, ExxonMobil exploration and new ventures.

The award adds some 2.6 million net acres to ExxonMobil’s existing holdings in Argentina. Through its subsidiaries in Argentina, the company holds interest in some 315,000 net acres spanning seven blocks in the onshore Neuquen basin of the Vaca Muerta formation.

In addition to the blocks with ExxonMobil, QP also was awarded the exploration rights for Blocks CAN-107 and CAN-109 in the North Argentina basin as part of a consortium comprising an affiliate of Shell (operator with 60% interest) and an affiliate of QP (with 40% interest).

Equinor adds seven offshore exploration blocks to its portfolio after presenting winning bids in the round—five as operator. With 100% interest, Equinor will operate Blocks MLO 121, CAN 108, AUS 105, and AUS 106. The company will serve as operator of Block CAN 114 in a 50-50 interest split with YPF and will participate in Block MLO 123 (25%) with Total as operator (37.5%) and YPF (37.5%).

Wintershall was awarded for bidding on two blocks in the Malvinas basin. In addition to the CMA-1 exploitation concession, with this award, the company will participate in further offshore exploration projects in Argentina.

The exploration licenses are about 300 km off southeastern Argentina. Wintershall will hold 27% interest in Blocks MLO-114 and MLO-119. British-Irish firm Tullow will serve as operator, while the Argentine company Pluspetrol is another partner.
The two 6,000-sq-km and 4,500-sq-km blocks will be covered with 3D seismic surveys during the initial exploration period, Wintershall said.

A resolution will be issued by Argentina’s Secretariat of Energy confirming the public tender results, which are subject to customary confirmation and regulatory approvals by the Argentinian authorities.

Source: OGJ


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