French energy major TotalEnergies affiliate Total Austral has signed a US$500 million deal with Argentine state-run oil company YPF for the sale of its 45% operated interest in two unconventional oil and gas ( O&G ) blocks in Argentina.

The Rincón La Ceniza and the La Escalonada blocks, located in the Vaca Muerta shale formation, are currently in a pilot development phase. Total Austral’s partners in these blocks are Gas y Petroleo de Neuquen ( 10% ) and O&G Developments ( 45% ), which is owned by UK-listed energy major Shell. Argentina’s Vaca Muerta shale formation is the world’s second-largest unconventional gas reserve.

“The sale of Rincon La Ceniza and La Escalonada blocks is part of our active portfolio management strategy,” states Javier Rielo, TotalEnergoes’ senior vice-president of exploration and production for the Americas. “TotalEnergies remains fully committed to Argentina, where it operates a large unconventional area of 183,000 nets acres in the Vaca Muerta play, after the divestment of these two blocks, which represented around 20% of our net acreage in that play.

“This transaction allows us to unlock value from part of our portfolio, while focusing on the development of our core assets in the Neuquén Basin and in the offshore of Tierra del Fuego.”

The company is currently producing gas and condensates from the operated blocks Aguada Pichana Este and San Roque, with a combined production of around 50,000 barrels of oil equivalent per day in 2024.

TotalEnergies has been operating in Argentina since 1978 and employs more than 1,100 people in its business segments, in exploration and production, renewable electricity ( solar and wind ) and lubricants.

Through its Total Austral affiliate, the French major is the country’s leading international gas producer, operating some 25% of production. The company’s equity share of production averaged 95,000 barrels of oil equivalent per day in 2024.

In Tierra del Fuego, alongside partners Harbour Energy ( 37.5% share ) and Pan American Sur ( 25% ), TotalEnergies ( 37.5% ) operates the Cuenca Marina Austral 1 concession, which includes onshore fields and six offshore platforms.

In the Argentine province of Neuquen, the company holds equity interests in three operated onshore blocks.

Across the country, TotalEnergies operates three wind farms and one solar plant, with an installed capacity of approximately 300 megawatts.