Shell and Equinor in joint acquisition of Vaca Muerta asset from Schlumberger

Bruchou & Funes de Rioja - June 14, 2020

Martinez de Hoz & Rueda, Bruchou Fernández Madero & Lombardi, and Martelli Abogados represented their respective clients, Schlumberger, Equinor and Shell as they completed a significant transaction that sees Schlumberger selling its 49% interest in the Bandurria Sur onshore block in Neuquén, Argentina to Shell Argentina S.A. and Equinor.

This divestment covers all of Schlumberger’s interest in the Bandurria Sur shale oil block, consisting of approximately 56,000 gross acres. The operator is YPF S.A. (currently with a 51% interest) and the block is in the late pilot phase of development with a current production of around 10,000 barrels of oil equivalent per day.

Martinez de Hoz & Rueda represented Schlumberger in the transaction that closed on January 30, 2020. Equinor was represented by Bruchou, Fernández Madero & Lombardi, and Shell was represented by Martelli Abogados. According to the public statements made by the parties, the deal is worth in excess of USD 350 million which makes it the largest M&A transaction in Argentina over the last 12 months.

Bandurria Sur, together with Loma Campana and La Amarga Chica, are the most promising blocks of Vaca Muerta, from which about 64,000 of the 100,000 barrels of oil are extracted daily.

Partners: Javier Rodríguez Galli and María Lucila Winschel (corporate). Associates: Santiago P. BalbiPablo M. Muir (tax), Martina Ceppi Perdriel and Youssef El Chaer (corporate).