Exxon Mobil wins three exploration blocks offshore Argentina

[BUENOS AIRES] US 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 Exxon's existing holdings in Argentina, the company said. The blocks are located in the Malvinas basin, about 200 miles (320 kms) offshore Tierra del Fuego.

Exxon's existing Argentina holdings include 315,000 net acres spread over seven blocks in the onshore Neuquén Basin of the Vaca Muerta unconventional oilfield and a business support center in Buenos Aires.

ExxonMobil will have a 70 per cent stake, while Qatar Petroleum's 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 US$995 million. The country's 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 per cent stake in two of Exxon's affiliates in Argentina, giving Qatar's state-owned entity access to oil and gas shale assets in the Latin American country.

Exxon has been investing heavily in its US shale operations and in Guyana. Its development in Argentina has been slow due to several reasons, including the geographic remoteness of the country from US shale operations as well as government controls on natural gas prices.

The US oil company also invested in Brazil's prolific offshore oilfields throughout 2018, clinching numerous blocks in partnership with other companies. Exxon and Qatar Petroleum International landed Brazil's Tita area, locking in key real estate in the prized Santos basin.

The two companies have also partnered on three of Exxon's offshore exploration blocks in Mozambique's Angoche and Zambezi basins.

REUTERS