By Stephanie Daniels
TotalEnergies has announced that its affiliate – Total Austral has signed an agreement with YPF SA to sell its 45% operated interest in two unconventional oil and gas blocks in Argentina – Rincon La Ceniza and La Escalonada, for an amount of USD 500 million at a valuation of around 10,000 USD/acre.
Located in the Vaca Muerta area in the Neuquén Basin, these concessions (51,000 net acres) are currently in a pilot development phase, TotalEnergies has said in a press statement. Partners in these concessions the French energy firm said were Gas y Petroleo de Neuquen (10%) and O&G Developments LTD S.A (45%), owned by Shell.
“The sale of Rincon La Ceniza and La Escalonada blocks is part of our active portfolio management strategy. TotalEnergies remains fully committed to Argentina, where it operates a large unconventional area of 183,000 nets acres in the Vaca Muerta play, after the divestment of these two blocks which represented around 20% of our net acreage in that play. The Company is currently producing gas and condensates from the operated blocks Aguada Pichana Este and San Roque, with a combined production of around 50,000 boe/d in TotalEnergies share in 2024. 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” says Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies.
Completion of the transaction is subject to customary conditions.
TotalEnergies said it has been operating in Argentina since 1978, and currently employs more than 1,100 people in its business segments, in Exploration and Production, renewable electricity which includes solar and wind as well as lubricants.
Meanwhile TotalEnergies says it has remained the leading international gas producer in Argentina, operating some 25% of production, with equity share of production 95,000 barrels of oil equivalent per day on the average in 2024. This it said was possible through its Total Austral affiliate.
In Tierra del Fuego, alongside partners Harbour Energy (37.5%) and Pan American Sur (25%), TotalEnergies (37.5%) operates the Cuenca Marina Austral 1 (CMA-1) concession, which includes onshore fields and 6 offshore platforms.
In Neuquen, the Company said it is holding equity interests in three operated onshore blocks, operating 3 wind farms and 1 solar plant, with an installed capacity of approximately 300 MW across the country.