PARIS, August 6, 2025—TotalEnergies has finalized an agreement to sell its 45% operated interest in two unconventional oil and gas blocks in Argentina’s Vaca Muerta shale formation to YPF S.A. for $500 million. The move, announced Wednesday, marks a strategic reshuffling of the French energy giant’s upstream portfolio in South America.
The TotalEnergies Vaca Muerta assets involved—Rincon La Ceniza and La Escalonada—span approximately 51,000 net acres in the Neuquén Basin. Currently in the pilot development phase, the blocks were jointly held with Gas y Petróleo del Neuquén (10%) and Shell-owned O&G Developments LTD S.A. (45%).
Strategic Realignment for TotalEnergies
The sale is part of TotalEnergies’ broader strategy to focus on high-return assets while gradually transitioning toward cleaner energy sources.
“This divestment aligns with our active portfolio management strategy,” said Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies. “We remain committed to our long-term presence in Argentina, especially in gas production.”
Despite the sale of select TotalEnergies Vaca Muerta assets, the company will retain 183,000 net acres in Vaca Muerta, maintaining significant exposure to the prolific shale play. The company’s ongoing operations include the Aguada Pichana Este and San Roque blocks, where its share of production reached approximately 50,000 barrels of oil equivalent per day in 2024.
YPF Strengthens Domestic Energy Portfolio
For YPF, Argentina’s state-controlled energy company, the acquisition bolsters its position in the Vaca Muerta formation, one of the largest shale reserves outside North America.
The company has been steadily expanding its footprint in Vaca Muerta as part of a national effort to enhance energy security and reduce reliance on imports. The newly acquired blocks will allow YPF to accelerate development plans and potentially boost production in the medium term.
YPF’s purchase price, which values the assets at roughly $10,000 per acre, reflects the increasing confidence in Vaca Muerta’s long-term potential, particularly in a global environment seeking more secure and diversified energy sources.
Market and Operational Context
TotalEnergies has operated in Argentina since 1978 and employs over 1,100 people in the country. Through its affiliate Total Austral, the company remains the leading international gas producer in Argentina, responsible for nearly a quarter of the nation’s gas output.
The transaction is subject to customary closing conditions, including regulatory approval.
The Vaca Muerta shale, often likened to the U.S. Permian Basin in geological quality, has attracted significant international investment in recent years. However, fluctuating macroeconomic conditions and shifting energy priorities have led several players, including TotalEnergies, to recalibrate their regional commitments.
This move by TotalEnergies does not signal an exit from Argentina but rather a consolidation of assets, with a focus on core TotalEnergies Vaca Muerta blocks that continue to deliver consistent output and strategic value.
The $500 million transaction underscores the evolving strategies of major energy companies in balancing traditional hydrocarbon operations with portfolio optimization and energy transition goals. For Argentina, it reinforces the central role of Vaca Muerta in the country’s energy future, as domestic players like YPF deepen their operational control and investment in the region.
Visit more of our news! Oil Gas Energy Magazine.
