Interoil Exploration and Production ASA announced that it has completed a strategic decision to exit its conventional operations in Argentina. The exit covers the interests held by Interoil in the country in all of the Santa Cruz Sur joint operations (due to expire between April and August 2026), and the La Brea Block, as well as the right to challenge the termination of the Mata Magallanes Oeste (MMO) production concession and the Canadaon Ramirez (CR) exploration block. This decision follows a comprehensive review of Interoil's conventional onshore portfolio and reflects the Company's continued commitment to disciplined capital allocation and operational focus.
The decision to exit Argentina is also informed by a sustained deterioration in the operating and investment environment in the Province of Santa Cruz. Over time, several major international and national operators, including YPF, Pan American Energy, Petrobras, Sinopec and Total, have progressively reduced or exited their conventional positions in the region as asset competitiveness declined. Increased fiscal and regulatory complexity, recurring labor and social disruptions, and reduced long-term investment visibility have negatively impacted capital allocation decisions.
When combined with the mature nature of the assets and rising operating costs, these factors have contributed to a structurally less attractive environment for large-scale operators. The withdrawal process is being carried out in close coordination with local partners and regulatory authorities to ensure a responsible and orderly transition for all stakeholders. Interoil additionally confirms that the above-mentioned Argentine assets were sold to an Argentine investor in a transaction valued at a price of up to USD 1,000,000, payable in ten contingent installments.
Each installment is subject to the condition that, at the time of payment, production must have reached a threshold of 47,000 BOE per month. Furthermore, as part of the transaction structure, Interoil will receive an Overriding Royalty Interest (ORRI) equivalent to 80% of the profits generated from production exceeding 57,000 BOE per month".
