The approximately 56,000 gross acres shale oil block is in the late pilot phase of development and is located adjacent to the Shell-operated Bajada de Añelo block. The consideration for Shell’s 24.5% interest is $177.5 million. The investment further strengthens Shell’s position in Vaca Muerta and is in line with the company’s Upstream strategy which aims for competitive delivery and growth of high margin barrels.

In addition, Shell and Equinor have reached a preliminary agreement with YPF to jointly acquire an additional 11% working interest from YPF. Completion of this additional farm-in is subject to certain conditions after which Shell and Equinor will each hold 30% working interest in Bandurria Sur while YPF will hold the remaining 40% working interest and will continue as operator.

Shell Argentina’s President, Sean Rooney, commented: “Partnering with Equinor in accessing the Bandurria Sur block provides Shell with additional liquid-rich growth opportunities in what we see as a promising area. It also emphasizes Shell’s continuous commitment to develop Argentina’s energy resources and our strong and ongoing partnership with YPF in this country”. 

Aerial view of the Bandurria Sur block
Aerial view of the Bandurria Sur block

Shell in Argentina

The Shell Group has operated in Argentina continuously since 1914, starting its hydrocarbon exploration and production activities in 1921. In the Upstream business we are a partner in the Acambuco Joint Venture since 1998, a conventional gas field in Salta operated by Pan Amercian Energy LLC. Our more recent Upstream history began in 2012, when we launched exploration and subsequently exploitation of Unconventionals petroleum and gas deposits in the Neuquen basin. Shell currently operates the Sierras Blancas, Cruz de Lorena, Coiron Amargo Sur Oeste and Bajada de Añelo blocks. In April 2014, we also acquired a percentage of two blocks operated by Total Austral S.A.: La Escalonada and Rincon La Ceniza. Vaca Muerta plays an important role in the portfolio of future opportunities for Shell.

Editor’s Notes:

  • In our Unconventionals operations, we place top priority on protecting the safety of our employees, the communities where we operate and the environment.
  • Our Shales business has seen much improvement over the recent years, through focusing on core high-margin assets, increasing capital efficiency and reducing operating costs.
  • Our Shales operating model is now highly competitive. We expect to deliver $2-3 billion organic free cash flow in 2025.
  •  In April 2019, Shell grew its footprint in Argentina after winning together with its bid consortium member Qatar Petroleum International Limited two deep-water exploration blocks (CAN 107 and 109), located in the Northern Argentine Basin, as part of the Argentina Offshore Round 1.
  • Shell’s deep-water exploration activities are focused on growing existing heartlands and on emerging basins to add competitive and resilient options to its upstream portfolio.

Enquiries:

Investor Relations
International: +31 70 377 4540
North America: +1 832 337 2034

Media Relations
International: +44 207 934 5550
US & Brazil: +1 832 337 4355

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2018 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, January 31, 2020. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release.

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