Malvinas

Commentary

Argentina's RIGI regime and pro-investment policy support the case for exploration, and TotalEnergies' interpretation of new 3D seismic on MLO-123 could lead to the first well since the 2019 round. However, relinquishments by ExxonMobil, QatarEnergy, Tullow and partners, frontier costs and proximity to the disputed Falklands waters weigh on the basin. Outlook: Neutral.

Updated

October 8, 2026

Location

Description

The Malvinas Basin lies offshore Tierra del Fuego, between the Austral (Magallanes) Basin to the west, from which it is separated by the Río Chico–Dungeness Arch, and the Falklands (Malvinas) Platform to the east. It is bounded to the south by the North Scotia Ridge and Burdwood Bank, and connects with the Falkland Plateau Basin through the Falkland Chasm. The basin formed during Jurassic rifting associated with the break-up of Gondwana, followed by Early Cretaceous thermal sag and a Late Cretaceous–Cenozoic foreland phase linked to the Fuegian Andes. The Lower Cretaceous Springhill Formation is the main reservoir, charged by marine Lower Cretaceous shales.

Summary

Argentina's 2019 Offshore Round 1 revived exploration in the Malvinas Oeste area, and large 2D and 3D seismic surveys followed. Results have been mixed: ExxonMobil and QatarEnergy returned three blocks in 2024, Tullow, Pluspetrol and Harbour relinquished MLO-114 in 2025, and five of the 11 blocks awarded in Malvinas Oeste and Austral have now reverted to the state. TotalEnergies (with YPF and Equinor) has completed 3D seismic on MLO-123 and is assessing drilling options, while Eni (MLO-124) and Tullow (MLO-122) retain acreage. No well has yet been drilled under the round, although the nearby Fénix gas field (Austral Basin) started up in September 2024.