AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
TotalEnergies Sells Argentine Vaca Muerta Blocks for $500M
ByAinvest
Thursday, Aug 7, 2025 12:50 am ET1min read
TotalEnergies has sold its 45% interest in two unconventional oil and gas blocks in Argentina's Vaca Muerta area for $500M. The Rincon La Ceniza and La Escalonada blocks are currently in a pilot development phase. The deal is at a valuation of around 10,000 USD/acre. TotalEnergies' partners in the concessions are Gas y Petroleo de Neuquen and O&G Developments LTD S.A, owned by Shell.
TotalEnergies has announced the sale of its 45% interest in two unconventional oil and gas blocks in Argentina's Vaca Muerta area for a total of $500 million. The blocks, Rincon La Ceniza and La Escalonada, are currently in a pilot development phase and cover 51,000 net acres. The transaction was valued at approximately 10,000 USD/acre [1].The sale is part of TotalEnergies' active portfolio management strategy, allowing the company to focus on its core assets in the Neuquén Basin and offshore of Tierra del Fuego. The company remains committed to Argentina, where it operates a significant area of 183,000 net acres in the Vaca Muerta play [1].
TotalEnergies' partners in these concessions are Gas y Petroleo de Neuquen (10%) and O&G Developments LTD S.A (45%), owned by Shell. The deal is subject to customary conditions and is expected to be completed soon [1].
This transaction is part of TotalEnergies' strategy to divest minority stakes in areas where production costs exceed its new project ceiling of $20 per barrel, allowing the company to allocate capital to larger projects in Suriname and Brazil. The company aims to focus on low-cost, low-emissions oil and gas projects [2].
TotalEnergies has been operating in Argentina since 1978 and employs more than 1,100 people across its business segments, including Exploration & Production, renewable electricity (solar and wind), and lubricants. The company is the country's leading international gas producer, operating approximately 25% of the country's production [1].
References:
[1] https://www.businesswire.com/news/home/20250806854389/en/Argentina-TotalEnergies-Divests-Its-Interest-in-Two-Vaca-Muerta-Unconventional-Blocks
[2] https://www.marketscreener.com/news/totalenergies-sells-45-stake-in-argentina-oil-and-gas-blocks-to-ypf-for-500-million-ce7c5ed9d080ff20
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet