XRG to acquire 32% upstream stake in Vaca Muerta for ARGENTINA LNG
- XRG and Eni to each acquire a 32% interest in three Vaca Muerta upstream blocks from YPF, which will retain 36%.
- The upstream blocks are expected to feed the integrated 12 MTPA ARGENTINA LNG development and support floating LNG units.
- Blocks involved are Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas in the Vaca Muerta basin.
- Transaction completion is subject to customary regulatory approvals and will also support condensate monetization.
Deal terms
XRG and Eni each signed agreements with YPF to acquire a 32% interest in three upstream blocks in Vaca Muerta, with YPF retaining the remaining 36%. Completion remains subject to customary regulatory approvals.
Role in ARGENTINA LNG
The upstream blocks — Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas — are expected to form a core part of the integrated 12 million tonnes per annum ARGENTINA LNG project, supplying gas volumes to feed floating LNG units and supporting monetization of associated condensates.
Strategic rationale
The investment gives XRG upstream participation in a major unconventional gas basin, aligns with its joint development agreement with YPF and Eni, and advances its plan to build a resilient, integrated gas and LNG platform spanning gas, LNG and chemicals.
Portfolio context
Once completed, the transaction will add to XRG's global gas and LNG holdings, alongside interests in Rio Grande LNG (US), the Absheron field (Azerbaijan), Offshore Block 1 (Turkmenistan) and the Area 4 concession in Mozambique, including Coral North FLNG and Rovuma LNG.
Source: XRG