The deal, which values the concessions at roughly $10,000 per acre, will see TotalEnergies divest from the Rincon La Ceniza and La Escalonada blocks while maintaining a substantial presence in the region.
In a significant move within Argentina's energy sector, TotalEnergies announced today the sale of its 45% operated interest in two promising unconventional blocks in the Vaca Muerta area to YPF SA. The deal, valued at a substantial $500 million, will see the French energy giant transfer its stake in the Rincon La Ceniza and La Escalonada concessions, located in the resource-rich Neuquén Basin. The transaction assigns a high valuation to the assets, equating to approximately $10,000 per acre for the 51,000 net acres involved.
The concessions, which are currently in a pilot development phase, were previously a joint venture between Total Austral (45%), YPF's partners Gas y Petroleo de Neuquen (10%), and O&G Developments LTD S.A. (45%), the latter of which is owned by Shell. The divestment is framed by TotalEnergies as a strategic decision.
Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies, emphasized this strategic rationale in a statement. “The sale of Rincon La Ceniza and La Escalonada blocks is part of our active portfolio management strategy," he said. The company's goal, he explained, is to "unlock value from part of our portfolio, while focusing on the development of our core assets in the Neuquén Basin and in the offshore of Tierra del Fuego.” This statement highlights a deliberate effort to rebalance TotalEnergies' operational footprint in Argentina, a country where it remains deeply committed.
Despite the sale, TotalEnergies will continue to be a major player in the Vaca Muerta play. After the divestment of these two blocks, which constituted about 20% of its net acreage in the play, the company retains a substantial operated unconventional area of 183,000 net acres. TotalEnergies is currently a leading crude oil producer in the region, with its operated Aguada Pichana Este and San Roque blocks delivering a combined production of around 50,000 barrels of oil equivalent per day (boe/d) in 2024.
The Vaca Muerta shale formation is one of the world’s largest unconventional reserves, drawing significant investment from global energy companies. YPF, Argentina's state-owned oil and gas company, has a dominant position in the area, and this acquisition further solidifies its control over key assets. The purchase of TotalEnergies' stake is a clear signal of YPF's continued confidence and investment in the future of the Vaca Muerta.
