TotalEnergies Divests Vaca Muerta Blocks to YPF SA for $500 Million

TotalEnergies has sold its 45% interest in two Vaca Muerta unconventional blocks to YPF SA for $500 million. The transaction involves 51,000 net acres in the Neuquén Basin and represents around 20% of TotalEnergies' net acreage in the Vaca Muerta play. Despite the divestment, TotalEnergies remains committed to its operations in Argentina, maintaining a significant presence in the region with 183,000 net acres in Vaca Muerta.

Paris, July 2, 2025 – TotalEnergies has announced the sale of its 45% operated interest in two unconventional oil and gas blocks in Argentina's Vaca Muerta region to YPF SA for $500 million. The transaction involves the Rincon La Ceniza and La Escalonada blocks, which span 51,000 net acres in the Neuquén Basin and are currently in a pilot development phase [1].

The sale, valued at approximately $10,000 per acre, represents around 20% of TotalEnergies' net acreage in the Vaca Muerta play [2]. The divestment is part of TotalEnergies' active portfolio management strategy, aimed at focusing on its core assets in the Neuquén Basin and offshore in Tierra del Fuego [1]. Despite the divestment, TotalEnergies remains committed to its operations in Argentina, maintaining a significant presence in the region with 183,000 net acres in Vaca Muerta [1].

Total Austral, TotalEnergies' affiliate, operates the blocks alongside Gas y Petroleo de Neuquen (10%) and O&G Developments LTD S.A, owned by Shell (45%) [1]. The company continues to produce gas and condensates from the Aguada Pichana Este and San Roque blocks, with a combined production of around 50,000 barrels of oil equivalent per day in 2024 [1].

YPF SA, Argentina's state-owned energy company, has expressed its interest in the blocks, noting that the assets come with fracking licenses valid through 2051, which are key to its growth strategy [3]. The Rincon La Ceniza asset is well-located to potentially feed gas into a future Argentina LNG export facility, while the La Escalonada asset has mainly crude oil that could contribute to a developing northern hub in Vaca Muerta [3].

The sale of these blocks allows TotalEnergies to focus on its larger projects, such as the development of the Fenix gas field offshore Tierra del Fuego and in the Neuquen basin [3]. The completion of this transaction is subject to customary conditions [1].

References:
[1] https://totalenergies.com/news/press-releases/argentina-totalenergies-divests-its-interest-two-vaca-muerta-unconventional
[2] https://www.gurufocus.com/news/3040601/argentina-totalenergies-divests-its-interest-in-two-vaca-muerta-unconventional-blocks-tte-stock-news
[3] https://www.reuters.com/business/energy/totalenergies-sells-45-stake-argentina-oil-gas-blocks-ypf-500-million-2025-08-06/