Investing.com -- Energy company Mas Energy has announced that Equinor has started the process of gauging market interest for its assets in Vaca Muerta, Argentina.
Equinor’s holdings in the region include two main areas: Bandurria Sur and Bajo del Toro Norte. Both of these areas are operated by YPF, which also holds a Right of First Refusal (ROFR). Equinor has not made any comments on this matter.
Bandurria Sur, spread over 56,000 gross acres, is the third largest shale oil block in Argentina. Equinor holds a 30% stake in this block, with YPF and SHEL owning 40% and 30% respectively. The block produces approximately 70,000 barrels of oil equivalent per day (boe/d), with around 60,000 barrels per day (b/d) being oil.
Energy research firm Wood Mackenzie has valued Equinor’s stake in Bandurria Sur at around $0.9 billion, assuming a Brent crude oil price of around $70 per barrel and a 10% discount rate.
The other area, Bajo del Toro Norte, is an undeveloped block covering 38.8k gross acres. Equinor and YPF each hold a 50% stake in this block. Wood Mackenzie has estimated the value of Equinor’s stake in Bajo del Toro Norte at around $0.4 billion, also assuming a Brent crude oil price of around $70 per barrel and a 10% discount rate.
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