XRG and Eni have each signed agreements with YPF for the acquisition of a 32% interest in three upstream blocks, with YPF Argentina’s majority state-owned energy company), retaining the remaining 36%. Completion of the transactions remains subject to customary regulatory approvals.
The upstream blocks are expected to form a core part of the integrated 12mn tonnes per annum (MTPA) ARGENTINA Liquified Natural Gas (LNG) project, complementing XRG’s previously announced joint development agreement with YPF and Eni, and advancing key project components in line with the development plan.
For XRG, the proposed investment supports its strategy to build a resilient global gas and LNG platform by securing upstream participation in one of the world’s most significant unconventional gas basins and developing its role in a major new LNG export opportunity designed to connect Vaca Muerta’s gas resources with global markets.
YPF operates the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas upstream blocks in the unconventional Vaca Muerta basin, located onshore Argentina. These blocks are expected to form a core upstream component of ARGENTINA LNG’s integrated development, helping to anchor a large-scale upstream-midstream platform designed to unlock Vaca Muerta’s gas resources.
Strategic partner
“We are also pleased to be partnering with YPF, a highly capable and strategic partner with deep expertise in Argentina’s energy sector and a leading role in developing Vaca Muerta, and with Eni a leading developer of Floating LNG projects,” noted Mohamed Al Aryani, President of International Gas, XRG.
“We are taking another step forward in the development of Argentina LNG. The entry of Eni and XRG into the upstream segment strengthens the project’s value chain and allows us to move toward its development on a global scale,” stated Horacio Marín, Chairman and CEO, YPF.
“Our entry into Vaca Muerta unconventional basin, alongside YPF and XRG, strengthens Eni’s ability to develop world-scale gas resources and convert them into competitive LNG for international markets,” commented Guido Brusco, Chief Operating Officer, Global Natural Resources, Eni.
