(Reuters, 16.Apr.2019) â U.S. oil major Exxon Mobil Corp said on Tuesday its unit and an affiliate of Qatar Petroleum had won three exploration blocks offshore Argentina.
The three blocks will add about 2.6 million net acres to Exxonâs existing holdings in Argentina, the company said. The blocks are located in the Malvinas basin, about 200 miles (320 kms) offshore Tierra del Fuego.
Exxonâs existing Argentina holdings include 315,000 net acres spread over seven blocks in the onshore NeuquĂ©n Basin of the Vaca Muerta unconventional oilfield and a business support center in Buenos Aires.
ExxonMobil will have a 70 percent stake, while Qatar Petroleumâs affiliate will hold the rest.
The Argentine government issued a statement on Tuesday saying it received offers for the exploration of three offshore oil and gas basins from 13 companies for a total of $995 million. The countryâs energy secretariat was expected to confirm which companies were awarded which areas next month.
Qatar Petroleum signed an agreement with Exxon Mobil in June to buy a 30 percent stake in two of Exxonâs affiliates in Argentina, giving Qatarâs state-owned entity access to oil and gas shale assets in the Latin American country.
Exxon has been investing heavily in its U.S. shale operations and in Guyana. Its development in Argentina has been slow due to several reasons, including the geographic remoteness of the country from U.S. shale operations as well as government controls on natural gas prices.
The U.S. oil company also invested in Brazilâs prolific offshore oilfields throughout 2018, clinching numerous blocks in partnership with other companies. Exxon and Qatar Petroleum International landed Brazilâs Tita area, locking in key real estate in the prized Santos basin.
The two companies have also partnered on three of Exxonâs offshore exploration blocks in Mozambiqueâs Angoche and Zambezi basins.
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