Argentinian court orders YPF, Shell, Equinor to put offshore seismic survey plans on hold

An Argentinian court has blocked the national oil company (NOC) YPF and its partners Shell (UK) and Equinor (Norway) from moving ahead with seismic surveys at offshore blocks located off the coast of Mar del Plata, about 400 km south of the nation’s capital of Buenos Aires.

The court issued an injunction against the surveys after Guillermo Montenegro, the mayor of Mar del Plata, teamed up with several environmental organisations to deliver a presentation criticising the plan to collect seismic data from the offshore sites. In that presentation, the mayor and his supporters called attention to the potential for environmental damage, saying there could be permanent harm if a proper assessment was not conducted before the studies took place.

According to court documents, Federal Judge Santiago Martin ordered “the immediate suspension of the approval of the project” after hearing the mayor’s petition. He cited “the possibility of irreparable damage derived from the execution of the exploration work” as the reason for his decision.

Judicial officials also said they decided against allowing the companies to proceed in light of the absence of a strategic environmental assessment that made provisions for measuring the long-term effects of exploration work. As a result, the injunction is now set to remain in place until the court issues a final ruling on the case.

For their part, the oil companies have committed to full compliance with the court’s ruling, as well as the rules and regulations set by the Argentinian government.

The project has sparked a number of protests since the beginning of the year. In January, thousands of people took to the beaches in Mar del Plata to protest against the planned seismic campaign and voice their concerns about the risks that oil exploration and drilling posed to local beaches and fishing grounds. Their complaints drew support from residents of other coastal cities across Argentina, many of whom staged similar protests on their own beaches.

YPF, Equinor and Shell began planning for the seismic study began after securing a permit from the Argentinian government, under the leadership of President Alberto Fernandez, in November 2021. Officials in Buenos Aires authorised the project after the partners pledged to adhere to the “highest international standards” with respect to workplace safety and environmental preservation, and they have said they hoped the investors will find natural gas in quantities large enough to reduce the country’s dependence on imported fuel.