TotalEnergies has reached an agreement to sell its 45% operated interest in two unconventional oil and gas blocks, Rincon La Ceniza and La Escalonada, located in Argentina’s Vaca Muerta region. The buyer is YPF SA, and the transaction is valued at $500 million, or about $10,000 per acre. These concessions cover approximately 51,000 net acres and are currently in a pilot development phase.
Total Austral, a TotalEnergies affiliate, holds these interests alongside partners Gas y Petroleo de Neuquen (10%) and O&G Developments LTD S.A (45%), which is owned by Shell.
Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies, said: “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.”
The deal is subject to customary conditions before completion.
TotalEnergies has operated in Argentina since 1978. It employs over 1,100 people across several business areas including exploration and production as well as renewable electricity such as solar and wind power. Through its Total Austral affiliate, it leads among international gas producers in Argentina with operation of about one-quarter of national production. In 2024, its equity share averaged 95,000 barrels of oil equivalent per day.
In Tierra del Fuego province—alongside Harbour Energy (37.5%) and Pan American Sur (25%)—TotalEnergies (37.5%) operates the Cuenca Marina Austral 1 concession covering both onshore fields and six offshore platforms. In Neuquén province it maintains interests in three operated onshore blocks. Nationally it also runs three wind farms and one solar plant totaling roughly 300 MW capacity.
Globally active in about 120 countries with more than 100,000 employees worldwide focused on energy production ranging from oil to renewables like biogas and low-carbon hydrogen,TotalEnergies places sustainability at the center of its operations.
