TotalEnergies has signed an agreement to sell its 45% operated interest in two Vaca Muerta play unconventional oil and gas blocks in Argentina to YPF SA for $500 million.
Properties, Rincon La Ceniza, and La Escalonada cover 51,000 net acres of the Neuquén Basin and are at pilot development stage. Total Austral, a subsidiary of TotalEnergies, operates blocks with Gas y Petroleo de Neuquen with 10 percent interests, while O&G Developments LTD S.A, a company owned by Shell owns 45 percent.
The disposal of Rincon La Ceniza and La Escalonada blocks is a function of our active portfolio management strategy.". TotalEnergies remains fully focused on Argentina where it holds a large unconventional acreage of 183,000 net acres in the Vaca Muerta play after divestment of these two blocks which represented about 20% of our net acreage in the aforementioned play," Senior Vice President Americas, Exploration & Production at TotalEnergies, Javier Rielo, said. "The Company is currently extracting gas and condensates from operated blocks Aguada Pichana Este and San Roque with combined production of about 50,000 boe/d in TotalEnergies share in 2024. This sale allows us to unlock value from a part of our portfolio, while focusing on developing our core assets in the Neuquén Basin and in the Tierra del Fuego offshore."
The sale is subject to customary closing conditions.