Under the deal, Schlumberger will invest up to $390m in phased manner. The block, which is located in Vaca Muerta, Neuquén, will continue to be operated by YPF.
The deal will also include the execution of different technical studies, 26 pilot wells and building of new infrastructure.
The companies are planning to sign the definite agreements in the coming months. Schlumberger will a 49% stake in the joint venture, while YPF will retain 51%.
With an area of 228.5km2, Bandurria Sur covers 28.5km2 and is near to YPF's Loma Campana block in Neuquén's Vaca Muerta formation.
YPF chairman Miguel Ángel Gutiérrez said: “Bringing a new partner like Schlumberger to Vaca Muerta is strategic for YPF because they offer vast experience in the most important unconventional plays around the globe and a work team that facilitates strengthening our know-how.
“This joint venture, in addition to those signed with other large corporations, reaffirms YPF’s leadership in developing unconventional resources and our commitment to continue working in the pursuit of energy self-sufficiency.”
Schlumberger operations president Patrick Schorn said: “By leveraging our reservoir knowledge and track record in unconventional completions, we expect to create operational efficiencies and further reduce development costs in the world-class Vaca Muerta play.”
YPF produces about 43% of the total oil and gas in Argentina, in addition to supplying 56% of the fuel markets through a network of 1500 gas stations and other assets.
