Eni advances in Argentina with the signing of a Sale and Purchase Agreement to acquire a 32% stake in three exploration and production blocks located in the Vaca Muerta unconventional basin. The operation includes Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas, assets linked to the Argentina LNG integrated development.
Following the closing of the transaction, subject to approval by the competent authorities, the shareholding structure will consist of YPF with 36%, Eni with 32%, and XRG with another 32%. YPF will maintain a central role in the operation of the assets and the progress of the project.
Vaca Muerta will fuel the development of Argentina LNG
The agreement incorporates Eni into the upstream segment of the Argentina LNG project, an initiative that combines production, transport, and liquefaction of natural gas. The goal is to leverage Vaca Muerta resources to position Argentina as a long-term global LNG supplier.
Furthermore, the resources from these blocks are intended to supply a total capacity of 12 million tonnes per annum of LNG. This production will be supported by two floating LNG units, each with an estimated capacity of 6 MTPA.
Eni strengthens its international gas portfolio
Guido Brusco, Chief Operating Officer of Eni Global Natural Resources, noted that entering Vaca Muerta alongside YPF and XRG strengthens the company’s ability to develop gas resources on a global scale and transform them into competitive LNG for international markets.
Likewise, the operation fits with Eni’s strategy to expand its gas portfolio, participate in high-value integrated projects, and increase its commercial exposure to LNG. For the Italian company, Vaca Muerta represents a significant platform due to its volume of resources and its direct connection to external markets.
XRG and YPF consolidate the value chain
For its part, XRG adds a direct presence in one of South America’s most significant natural gas projects. The company believes that Argentina can play a growing role in the global gas supply and sees Argentina LNG as a way to convert unconventional resources into long-term exports.
In parallel, Horacio Marín, Chairman and CEO of YPF, indicated that the entry of Eni and XRG into the upstream segment strengthens the project’s value chain and allows for progress toward global-scale development.
Argentina seeks to expand its role as an LNG exporter
With this transaction, Argentina LNG gains greater technical, operational, and commercial backing. The project aims to transform Vaca Muerta resources into liquefied natural gas for international customers, while the country seeks to increase its energy exports and reinforce its presence in the global LNG market.
The operation still requires regulatory approval, but it marks a significant step forward for the project’s maturation and for the integration of international partners into Argentine gas production.
Source: Eni
Photo: Shutterstock
