The activities are located at Shell's Bajada de Añelo Block in Argentina’s Vaca Muerta.
The decision follows an agreement between the ruling minority government and the main opposition parties June 8 to grant more tax incentives for the oil industry.
Instead of producing the field from one central installation, the company is now looking at an option of developing parts of it, starting with an FPSO in the south and later adding a second unit in the north.
The company postponed its FID for the Rovuma LNG project, which had been expected this year, in March as the coronavirus outbreak and an oil price slump forced firms to delay projects and slash spending.
BP and Exxon Mobil produce massive amounts of oil in Alaska and have discovered huge gas resources that are stranded in the North Slope, which the proposed LNG project would allow that gas to access markets around the world.
A letter from the energy minister says seismic data indicates Eni's Sankofa offshore field, which entered production in 2017, and Springfield’s recently discovered Afina Field have “identical reservoir and fluid properties.”
Mark Bynoe, the director of the Department of Energy, said the country’s crude production averages between 75,000-80,000 barrels per day (bbl/d) and is expected to ramp up to 120,000 bbl/d by early June.
The startup of production is now expected in fourth-quarter 2021.
The Anglo-Dutch company slashed its 2020 spending plans by a fifth as measures to halt the spread of the virus led to an unprecedented drop in oil demand and sent oil prices to their lowest in two decades.