XRG Acquires 32% Stake in Vaca Muerta Assets to Advance Argentina LNG Project

ABU DHABI | EcoPulse24

XRG, ADNOC's international energy investment company, and Italy's Eni have signed Sale and Purchase Agreements (SPAs) with Argentina's YPF to each acquire a 32% interest in three upstream exploration and production blocks in the Vaca Muerta shale formation, while YPF will retain the remaining 36% stake, further strengthening the integrated Argentina LNG development.

The transaction remains subject to customary regulatory approvals and represents another strategic step in XRG's global expansion across the natural gas and liquefied natural gas (LNG) value chain.

Strategic Upstream Entry into One of the World's Largest Gas Basins

The acquisition covers the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks, which are operated by YPF within Argentina's Vaca Muerta formation - widely regarded as one of the world's largest and most promising unconventional gas resources.

The assets are expected to become the core upstream supply source for the integrated Argentina LNG Project, unlocking Vaca Muerta's vast natural gas reserves and connecting them to international LNG markets.

Supporting a 12 Million Tonnes Per Year LNG Project

The upstream acquisition forms a key component of the Argentina LNG Project, a fully integrated development designed to produce, process, liquefy, and export Argentine natural gas to global customers.

The project is expected to reach approximately 12 million tonnes per annum (mtpa) of LNG production capacity, with a Final Investment Decision (FID) targeted for 2027.

The gas resources are expected to supply multiple floating LNG production units while generating additional value through associated condensate production.

XRG: Argentina Can Become a Major Global Gas Supplier

Mohamed Al Aryani, President of International Gas at XRG, said Argentina possesses the resource base to play a significant role in meeting growing global demand for natural gas.

He described the Vaca Muerta basin as one of the world's premier gas resources and said the transaction gives XRG exposure to a long-life, high-quality upstream asset capable of becoming a reliable new source of LNG supply for international markets.

He added that the partnership with YPF and Eni combines local operational expertise with international LNG development capabilities to accelerate the project's long-term success.

YPF and Eni Highlight Integrated Value Chain

Horacio Marín, Chief Executive Officer of YPF, said the participation of XRG and Eni in the upstream segment strengthens the overall Argentina LNG development by integrating the project across its full value chain.

Guido Brusco, Chief Operating Officer Global Natural Resources at Eni, said the partnership will enhance the company's ability to develop world-class gas resources and convert them into competitive LNG supplies, extending its presence from upstream production in Argentina to LNG delivery across international markets.

Expanding XRG's Global LNG Portfolio

The transaction further advances XRG's strategy of building a geographically diversified global gas and LNG platform spanning key supply regions and major demand centers.

The company's international portfolio already includes investments in the Rio Grande LNG Project in the United States, the Absheron gas and condensate field in Azerbaijan, Block I offshore Turkmenistan, and Area 4 of Mozambique's Rovuma Basin, including the Coral North FLNG and Rovuma LNG projects currently under development.

EcoPulse24 Analysis

The acquisition reflects XRG's broader strategy of building an integrated global LNG business extending beyond infrastructure ownership into upstream resource development.

Rather than investing solely in LNG export facilities, XRG is positioning itself across the entire value chain - from exploration and production to liquefaction and global marketing - enhancing long-term supply security while strengthening ADNOC's international gas portfolio.

With global LNG demand expected to continue expanding over the coming decade, particularly across Asia and Europe, the Vaca Muerta investment provides XRG with exposure to one of the world's most significant emerging gas export opportunities and reinforces its ambition to become a leading global player in natural gas and LNG.