Total Sells Argentina Shale Assets to YPF for $500M

YPF SA agreed to buy TotalEnergies SE's assets in Argentina's Vaca Muerta shale patch for $500 million. This is the latest sale by an international oil giant in Argentina since President Javier Milei took office. The deal includes Total's stakes in the La Escalonada and Rincon La Ceniza blocks. YPF's CEO said drilling activity in the shale patch may slow down in the near term due to foreign firms restraining spending amid flagging prices.

Argentina’s state-run energy firm YPF SA has agreed to purchase some of TotalEnergies SE’s assets in the Vaca Muerta shale patch for $500 million. This transaction follows a series of divestments by international oil giants in Argentina since President Javier Milei took office in December 2023 [1].

YPF will take over Total’s stakes in the La Escalonada and Rincon La Ceniza blocks of Vaca Muerta. These blocks lie in an underdeveloped corner of Argentina’s burgeoning Vaca Muerta shale formation where Chevron Corp. also has a key asset [2]. The deal is part of TotalEnergies' active portfolio management strategy, with the company retaining 183,000 net acres in the Vaca Muerta play, representing about 80% of its previous holdings in the area [2].

The sale comes amidst a broader trend of international oil companies divesting assets in Argentina despite investor optimism about the pro-market policies of President Milei. YPF’s Chief Executive Officer Horacio Marin noted that drilling activity in the shale patch may weaken in the near term as foreign firms restrain spending amid flagging prices [1].

TotalEnergies has been operating in Argentina since 1978 and employs more than 1,100 people across its business segments. Through its Total Austral affiliate, it is Argentina’s leading international gas producer, operating about 25% of the country’s production [2]. The transaction is subject to customary closing conditions.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-06/ypf-to-buy-total-s-argentina-shale-assets-for-500-million
[2] https://www.investing.com/news/company-news/totalenergies-sells-vaca-muerta-blocks-to-ypf-for-500-million-93CH-4173660