Equinor ASA and Royal Dutch Shell Plc are strengthening their presence in Argentina’s Vaca Muerta Shale play through a transaction worth $355 million.

In a Jan. 31 news release, Equinor said the duo completed a joint acquisition of the 49% interest held by Schlumberger Ltd. in the Bandurria Sur onshore block in the Neuquén province. Argentina state energy firm YPF SA, which currently holds a 51% interest, is operator of the block.

The Bandurria Sur block covers around 56,000 gross acres in the central area of the Vaca Muerta Shale play. The block is in the late pilot phase of development with current production of around 10,000 barrels of oil equivalent per day, according to the company release.

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