Shell and Qatar Petroleum Withdraw from Offshore Hydrocarbon Exploration in Argentina’s CAN 107 Block

Shell and Qatar Petroleum have terminated their exploration activities in the CAN 107 offshore block located approximately 190 kilometers from Mar del Plata, Argentina, following the failure to detect promising hydrocarbon indicators during initial seismic studies. The Argentine Energy Secretariat officially revoked the exploration license through Resolution 73/2026, reverting the block to state control. This block was part of a larger concession allocated in 2019 under an international bidding round, where Shell held a 60 percent operating interest and Qatar Petroleum the remaining 40 percent. The exploration, conducted with the vessel PXGEO 2, spanned over 120 days and incorporated 2D and 3D seismic techniques across more than 16,000 square kilometers on the Argentine continental shelf. Despite compliance with investment and environmental obligations, the results were insufficient to proceed with exploratory drilling.

The cessation of activity in CAN 107 closely follows previous discouraging outcomes such as the dry Argerich-1 well drilled in the nearby CAN 100 block in June 2024, which included Shell, YPF, and Equinor. These developments have fostered increased skepticism about the geological maturity and economic viability of the North Argentina Basin’s offshore frontier. While the seismic data confirmed the presence of geological features, they did not provide the necessary evidence to justify further high-capital investment in drilling. The possibility remains that other blocks in the vicinity, like CAN 109, will face similar scrutiny and potential withdrawal.

Legal challenges have also impeded exploration efforts, with judicial rulings temporarily halting projects led by Equinor, YPF, and Shell in the broader North Argentina Basin due to environmental concerns and insufficient public consultation. This regulatory uncertainty adds complexity to the pursuit of offshore hydrocarbons. Nevertheless, local stakeholders and municipal authorities maintain interest in potential long-term economic benefits, emphasizing ongoing preparedness to support offshore industry development. Future exploration campaigns are expected to prioritize more refined geophysical assessments and regulatory compliance to mitigate risk and attract investment.