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PARIS - TotalEnergies (EPA:TTEF) announced Wednesday that its affiliate Total Austral has agreed to sell its 45% operated interest in two unconventional oil and gas blocks in Argentina’s Vaca Muerta area to YPF SA (NYSE:YPF) for $500 million, valuing the assets at approximately $10,000 per acre.
The transaction involves the Rincon La Ceniza and La Escalonada blocks in the Neuquén Basin, which cover 51,000 net acres and are currently in a pilot development phase. The company’s partners in these concessions are Gas y Petroleo de Neuquen (10%) and Shell-owned O&G Developments LTD S.A (45%).
"The sale of Rincon La Ceniza and La Escalonada blocks is part of our active portfolio management strategy," said Javier Rielo, Senior Vice President Americas, Exploration & Production at TotalEnergies, in a press release statement.
Following the divestment, TotalEnergies will retain 183,000 net acres in the Vaca Muerta play, representing about 80% of its previous holdings in the area. The company continues to produce gas and condensates from its operated blocks Aguada Pichana Este and San Roque, with a combined production of approximately 50,000 barrels of oil equivalent per day in TotalEnergies’ share in 2024.
TotalEnergies has operated in Argentina since 1978 and currently employs more than 1,100 people across its business segments. Through Total Austral, it is Argentina’s leading international gas producer, operating about 25% of the country’s production.
The transaction is subject to customary closing conditions.
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