Wintershall Dea has contracted a Sales and Purchase Agreement (SPA) with ConocoPhillips to jointly develop the Aguada Federal and Bandurria Norte blocks within the central Argentine province of Neuquén. The blocks hold significant unconventional oil and natural gas sources in the natural Vaca Muerta shale formation. Under the terms of the agreement, Wintershall Dea shall continue as operator of the licenses.
“ConocoPhillips’ extensive technology developed across unconventional operations in US shale plays complements Wintershall Dea’s technological experience and a long time of native experience. We’re enthusiastic about this new partnership as it would allow us to facilitate the development of the two blocks,” says Thilo Wieland, member of Wintershall Dea board, liable for Latin America. Wintershall Dea has already successfully conducted pilot projects in each block. The production testing is at present ongoing.
The transaction is assumed to be closed in 2019, subject to approval by the related authorities.
As a part of the transaction, ConocoPhillips will acquire a 45% curiosity share within the Aguada Federal block situated in the Neuquén Basin. Wintershall Dea as the operator will retain a 45% share within the block (97 km2). The remaining 10% is held by Gas y Petróleo del Neuquén S.A. (GyP). ConocoPhillips can even acquire a 50% share in the nearby Bandurria Norte block (105 km2). Wintershall Dea will retain the other 50% and can remain operator of the block.
Wintershall Dea has been lively for more than 20 years within the province of Neuquén, the place it produces gas and oil from different standard and tight fuel reservoirs. In addition to Aguada Federal and Bandurria Norte, Wintershall Dea holds shares within the blocks San Roque and Aguada Pichana Este. The blocks lie within the promising Vaca Muerta fairway and organize vital shale oil and gas resources.