The Bandurria Sur oil block is located in the Vaca Muerta formation. Credit: YPF.

Oilfield services firm Schlumberger has sold its 49% interest in the Bandurria Sur Block in Argentina to Shell Argentina and Equinor.

Holding a 51% interest, Argentine energy firm YPF will continue as operator of the field.

According to the agreement, both Shell and Equinor will pay $177.5m each for their 24.5% interest.

Bandurria Sur oil block is located in the western Argentinean province of Neuquén.

The oil block is currently in the late pilot development phase with a current production capacity of approximately 10,000 barrels of oil equivalent per day (boe/d).

Schlumberger CEO Olivier Le Peuch said: “The monetisation of our Bandurria Sur interest is an important milestone in Schlumberger’s strategy.

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“It has been a privilege working in partnership with YPF on the pilot phase of this world-class unconventional resource.”

Equinor and Shell have also signed an agreement with YPF to acquire an additional 11% interest from YPF.

Upon completion of this additional transaction, Equinor and Shell will each own a 30% non-operated interest in the block with YPF continuing as operator and owning a 40% interest.

This additional transaction is, however, subject to the receipt of approvals from relevant authorities.

Equinor Argentina manager Nidia Álvarez Crogh said: “We are very pleased to partner with Shell in the Bandurria Sur block, an asset in an area with significant potential, and to further develop our close partnership with YPF, with whom we are already exploring several onshore, offshore and renewable opportunities in Argentina.

“We are broadening our activities in Argentina in support of our strategy to build international growth options.”