MercoPress. South Atlantic News Agency

Argentina admits dry well off the coast of Buenos Aires province

Equinor, the Norwegian company will continue to keep 75% of both blocks, which contrary to the North basin, already has proven elements of hydrocarbons which is has been exploiting for decades

The Argentine government authorized the sale of three offshore blocks from the Austral basin, a day after Norway's Equinor and Shell Oil said they had not found a trace of oil in the well Argerikch drilled offshore Argentine province of Buenos Aires.

Equinor will be selling 25% of its blocks 105 and 106 to the Argentine oil company CGC, belonging to the Eurnekian family, surprising and rising brows in the oil and political sector.

The Eurnekian among many assists has the concession of all Argentine and Uruguayan airports, plus those in Armenia and two in Italy. He also owns a construction company planning a new tunnel in the Andes crossing from Argentina to Chile, and although publicly distanced, Eurnekian was for many years the business boss of Argentine president Javier Milei. His group also financed the Argentine Cemetery Memorial at Darwin.

However private sources from the oil industry have said that the operation had been started long before the drilling of the Argerich will, and in no way can the two events be linked.

In effect the Norwegian company will continue to keep 75% of both blocks, which contrary to the North basin, already has proven elements of hydrocarbons which is has been exploiting for decades.

A second sale refers to the 30% of the Tauro-Sirius block belonging to Italy's ENI, and to be acquired by PAE, an affiliate of Pan American South. The rest of the farm in process belongs in equal shares to Total Austral and Germany{s Winterdhall, 35% each.

In all cases the companies involved have sixty working days to present to the Argentine authorities, the public notary registry of the lease of concessions, according to the official Gazette.

As to the future to the North Basin, Argentine and foreign experts point out that an only well is not enough to determine the existence or not of hydrocarbons and international experience point out to many more years of exploration and well drilling.

In effect the head of the Development Department of the offshore county in the province of Buenos Aires where the well was drilled said “despite all he remained optimistic, since the fact no oil was found, this does not mean it is somewhere there, the drilling missed but is very useful to determine where to search for oil next time.”

In their report Equinor and Shell point out that the EQN.MC.A well in the CAN block was completed as planned, and even after confirming the geological model, no indications of hydrocarbons were found, and thus the well has been classified as dry.

The drilling of this first well in deep water is a milestone in the exploration history offshore Argentina. The well together with the seismic acquisition campaigns in the Argentine North Basin and the Austral Basin and West Malvinas, represent a major exploration campaign achievement offshore. The release commits companies to further check information compiled and an exhaustive analysis which will render a greater understanding of the hydrocarbons potential in those areas.

This means that following two months of work, the Valaris DS 17 vessel finished drilling Argerich the firts ultra deep water well in the Argentine Sea (SW Atlantic) looking for an oil deposit some 300 kilometers off the coast of Mar del Plata. The project is headed by Equinor with YPF and Shell as associates.

A second sale refers to the 30% of the Tauro-Sirius block belonging to Italy's ENI, and to be acquired by PAE, an affiliate of Pan American South.