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Schlumberger in $390m Vaca Muerta deal

Oilfield services company signs memorandum of understanding worth up to $400 million to drill wells on Bandurria Sur block

Schlumberger has signed a preliminary deal with Argentina’s state-controlled YPF to take a minority stake in a block in the Vaca Muerta Shale trend and invest as much as $390 million to develop it, according to local reports.

The memorandum of understanding would see the international services giant take an interest in the Bandurria Sur block in Neuquen province and drill a number of exploration and appraisal wells with its Integrated Project Management division. 

Bandurria Sur, which borders the prolific Loma Campana block where YPF is partnered with Chevron, was one of 10 areas targeted by YPF for pilot drilling programmes in the coming year, chief executive Ricardo Darre told investors earlier this month.

Schlumberger chief executive Paal Kibsgaard has pushed his company’s comprehensive service offerings as well as more creative commercial models as a way to lower breakeven costs.

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