TotalEnergies divests shale oil and gas blocks in Argentina to YPF

BUENOS AIRES, August 6, 2025 – TotalEnergies has agreed to sell its 45% operated stake in the Rincon La Ceniza and La Escalonada blocks in Argentina’s Vaca Muerta shale play to YPF for USD 500 million, the French energy giant said on Wednesday.

The blocks, spanning 51,000 net acres in the Neuquén Basin, are in a pilot development phase. Total Austral’s partners include Gas y Petroleo de Neuquen (10%) and Shell-owned O&G Developments (45%).

“This transaction allows us to unlock value from part of our portfolio, while focusing on the development of our core assets in the Neuquén Basin and in the offshore of Tierra del Fuego,” TotalEnergies senior vice-president Americas Javier Rielo said.

The deal aligns with TotalEnergies’ portfolio management strategy and follows its decision to concentrate on 183,000 net acres of operated unconventional assets in the Vaca Muerta play. The company’s share of production in 2024 from Aguada Pichana Este and San Roque blocks was around 50,000 boepd.

Completion of the transaction remains subject to standard conditions.

TotalEnergies has operated in Argentina since 1978 and employs over 1,100 people across oil and gas, renewables and lubricants. It is the leading international gas producer in the country through Total Austral, holding 25% of production, and also manages assets in Tierra del Fuego and Neuquén. It operates three wind farms and one solar plant with 300 MW of installed capacity.

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