Equinor Exploring Sale of Argentina Onshore Assets in Vaca Muerta
Norwegian energy giant Equinor is reportedly considering the sale of its onshore assets in Argentina's prolific Vaca Muerta shale region.
Assets in Question:
* 30% stake in the Bandurria Sur license
* 50% stake in Bajo del Toro Norte
Sale Process:
* Bank of America has been appointed to facilitate the sale.
* No final decision on divestment has been made yet.
Other Details:
* Equinor intends to retain its offshore assets in Argentina.
* Vaca Muerta is known for its vast shale gas and oil reserves.
* Bandurria Sur currently produces approximately 70,000 barrels of oil equivalent per day.
* Bajo del Toro Norte remains undeveloped.
Estimated Value:
Broker Jefferies, citing Wood Mackenzie estimates, values Equinor's stakes in the two licenses at around $1.3 billion.
Right of First Refusal:
Argentina's state-owned oil company YPF holds a 40% stake in Bandurria Sur and 50% in Bajo del Toro Norte, giving it the right of first refusal for any sale.
Shell also holds a 30% stake in Bandurria Sur.