XRG acquires YPF stake in Argentinian shale to advance LNG project
ADNOC’s investment arm XRG is acquiring a 32% stake in three upstream gas blocks in Argentina’s Vaca Muerta shale formation, after signing an agreement with the country’s largest state-backed energy company YPF.
XRG’s latest acquisition covers the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks, which are operated by YPF.
Italian energy major Eni has also acquired a 32% stake in the same assets, while YPF will retain the remaining 36%. The Final Investment Decision (FID) is expected to take place in the second half of 2026.
A statement said that the transactions remain subject to customary regulatory approvals.
Strengthening Argentina’s LNG export ambitions
The deal comes at a time when geopolitical tensions have severely restricted LNG supplies through the Strait of Hormuz.
However, this project is designed to connect Vaca Muerta’s vast unconventional gas resources with international markets through a planned 12 million tonnes per annum (mtpa) LNG export facility.
XRG said the assets will provide long-term gas supply for floating LNG facilities while also supporting condensate production.
Mohamed Al Aryani, President of International Gas at XRG, said the investment strengthens the company’s role in the development of a significant new LNG supply source.
“Argentina has the potential to play an increasingly important role in meeting the world’s growing demand for natural gas, and projects such as Argentina LNG will be important to unlocking that opportunity,” he said.
Horacio Marín, Chairman and Chief Executive Officer of YPF, said the agreements represent another milestone in the development of the Argentina LNG project.
Guido Brusco, Chief Operating Officer of Global Natural Resources at Eni, said, “Vaca Muerta is one of the world’s richest unconventional basins in terms of resources: our participation positions us across the entire value chain, from Argentine upstream to the supply of LNG to international customers, creating value while contributing to global energy security.”
What the deal means for XRG
XRG has previously announced a joint development agreement with YPF and Eni for the Argentina LNG project.
The company, which was launched in 2024, is an international lower-carbon energy and chemicals investment company, with an enterprise value of over $80 billion.
For XRG, the Vaca Muerta acquisition fits neatly into its goals to capitalise on the energy transition while focusing on emerging economies.
XRG’s global gas and LNG portfolio includes interests in the Absheron gas and condensate field in Azerbaijan, Offshore Block 1 in Turkmenistan, the Area 4 concession in Mozambique’s Rovuma Basin, including the planned Coral North FLNG and Rovuma LNG developments, along with the Rio Grande LNG project in the US.
