TotalEnergies Sells Vaca Muerta Blocks

TotalEnergies announced 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's Vaca Muerta area. The sale of the Rincon La Ceniza and La Escalonada blocks is for an amount of US$500 million. The concessions, located in the Neuquén Basin, are in a pilot development phase.

Total Austral's partners in these concessions are Gas y Petroleo de Neuquen (10%) and O&G Developments LTD S.A. (45%), owned by Shell. The transaction is part of TotalEnergies' portfolio management strategy. The company will focus on its core assets in the Neuquén Basin and offshore Tierra del Fuego.

Javier Rielo, Senior Vice President Americas, Exploration & Production, TotalEnergies, said the transaction allows the company to unlock value from its portfolio. The company retains a large unconventional area of 183,000 net acres in the Vaca Muerta play. TotalEnergies is currently producing gas and condensates from the Aguada Pichana Este and San Roque blocks, with a combined production of approximately 50Mboe/d in 2024.