TotalEnergies Sells Argentine Vaca Muerta Blocks for $500M

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