Statoil to enter Argentina

State-owned YPF and Norwegian major Statoil will partner to explore Vaca Muerta shale acreage, the companies announced Friday.

Sergio Giorgi, YPF’s vice-president for business development and development engineering, and Statoil’s vice-president for exploration Tim Dodson signed in Geneva a preliminary agreement under which the Norwegian firm will take on a 50% stake in the Neuquén Basin’s Bajo del Toro block.

“This is a light oil exploration project in a world-class unconventional resource play, the Vaca Muerta formation,” Dodson said. “The opportunity has an excellent fit with Statoil’s sharpened strategy, and is in line with our exploration strategy of delivering profitable, high-quality resources.”

According to a company statement, Statoil will provide 100% of the investment for undisclosed future activities in the block.

The acquisition of stakes in the 157-square-kilometre Bajo del Toro block will represent Statoil’s first step into Argentina’s oil and gas industry.

“Bringing a new international player like Statoil into the country shows confidence in Vaca Muerta as a promising shale play and in YPF as a leading operator,” YPF chairman and president Miguel Angel Gutierrez said in the statement. “We are pleased to expand the co-operation between both companies.”

The companies are expected to reach a final agreement on the partnership in the coming months that will then be subject to regulatory approval from the Neuquén provincial government.