Argentina consolidates its oil assets.
TotalEnergies has agreed to sell its 45% operated interest in two unconventional oil and gas blocks in Argentina’s Vaca Muerta play to YPF SA for $500 million. Argentina’s state-controlled oil firm YPF, already the country’s largest producer with oil output soaring to 270,000 bpd.
The assets, Rincon La Ceniza and La Escalonada, span 51,000 net acres in the Neuquén Basin and are in the pilot development phase. Total Austral, a TotalEnergies affiliate, operates the blocks alongside Gas y Petroleo de Neuquen (10%) and O&G Developments LTD S.A, owned by Shell (45%). These blocks are located in the Vaca Muerta formation, a major shale oil and gas basin.
“The sale of Rincon La Ceniza and La Escalonada blocks is part of our active portfolio management strategy. TotalEnergies remains fully committed to Argentina, where it operates a large unconventional area of 183,000 nets acres in the Vaca Muerta play, after the divestment of these two blocks which represented around 20% of our net acreage in that play,” said Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies. “The Company is currently producing gas and condensates from the operated blocks Aguada Pichana Este and San Roque, with a combined production of around 50,000 bpd in TotalEnergies share in 2024. This transaction allows us 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.”
TotalEnergies announces that its affiliate Total Austral has signed an agreement with YPF SA for the sale of its 45% operated interest in two unconventional oil and gas blocks in Argentina, Rincon La Ceniza and La Escalonada, for an amount of USD 500 million at a valuation of around 10,000 USD/acre.
TotalEnergies has been operating in Argentina since 1978. Through its Total Austral affiliate, it is the country’s leading international gas producer, operating some 25% of production. The company’s equity share of production averaged 95,000 barrels of oil equivalent per day in 2024. In Tierra del Fuego, alongside partners Harbour Energy (37.5%) and Pan American Sur (25%), TotalEnergies (37.5%) operates the Cuenca Marina Austral 1 (CMA-1) concession, which includes onshore fields and 6 offshore platforms. In Neuquen, the company holds equity interests in three operated onshore blocks. Across the country, TotalEnergies operates 3 wind farms and 1 solar plant, with an installed capacity of approximately 300 MW.
TotalEnergies is divesting these assets to focus on other projects, particularly offshore gas, and is adjusting to the evolving business landscape in Argentina. The acquisition reflects TotalEnergies’ focus on more profitable projects and aligns with Argentina’s goal to become a regional energy powerhouse. The Vaca Muerta, with 447,000 bpd of oil production, is one of the world’s most cost-effective shale basins, with YPF accounting for 52% of output.
YPF’s recent production growth to 539,000 bpd in Q2 2025 suggests a stable trajectory. The acquisition offers long-term growth potential but carries significant risks tied to infrastructure development and policy stability.
Argentina’s market-friendly reforms have attracted over $15.5 billion in investments, positioning the country as a counterbalance to U.S. and Brazilian energy dominance. However, political and environmental risks remain. Key projects like the VMOS pipeline (550,000 bpd) and Oldelval Duplicar (750,000 bpd) are crucial for unlocking the basin’s potential and supporting LNG initiatives, such as YPF’s Southern Energy FLNG.
YPF’s move consolidates Argentina’s energy leadership, offering a high-stakes opportunity to participate in a strategically important, underdeveloped asset. The success of YPF’s strategy will hinge on its ability to manage political and operational challenges.
YPF is solidifying its position as a national champion in Argentina’s energy sector, particularly with the Vaca Muerta’s potential. The acquisition includes fracking rights until 2051, giving YPF control over the development of the blocks. The Vaca Muerta formation is experiencing significant oil production growth, with YPF playing a crucial role in driving this increase. Argentina is also investing in infrastructure, such as pipelines, to facilitate increased oil and gas exports.
/TotalEnergies, World Oil, The Rio Times/