TotalEnergies introduced, in a press release posted on its website not too long ago, that its affiliate Complete Austral has signed an settlement with YPF SA for the sale of its 45 p.c operated curiosity in two unconventional oil and fuel blocks in Argentina “for an quantity of $500 million at a valuation of round $10,000/acre”.
The blocks comprise Rincon La Ceniza and La Escalonada, TotalEnergies highlighted within the launch. The corporate identified that these concessions are situated within the Vaca Muerta space within the Neuquén Basin, comprise 51,000 web acres, and are at present in a “pilot growth section”.
Completion of the transaction is topic to customary situations, TotalEnergies famous within the assertion.
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“The sale of Rincon La Ceniza and La Escalonada blocks is a part of our lively portfolio administration technique,” Javier Rielo, TotalEnergies Senior Vice President Americas, Exploration & Manufacturing, stated within the assertion.
“TotalEnergies stays absolutely dedicated to Argentina, the place it operates a big unconventional space of 183,000 nets acres within the Vaca Muerta play, after the divestment of those two blocks which represented round 20 p.c of our web acreage in that play,” he added.
“The corporate is at present producing fuel and condensates from the operated blocks Aguada Pichana Este and San Roque, with a mixed manufacturing of round 50,000 barrels of oil equal per day in TotalEnergies share in 2024,” he continued.
“This transaction permits us to unlock worth from a part of our portfolio, whereas specializing in the event of our core belongings within the Neuquén Basin and within the offshore of Tierra del Fuego,” Rielo went on to state.
In a translation of a letter to the Argentine Securities Fee dated August 6, which was included in a Securities and Change Fee doc posted on the YPF web site not too long ago, YPF stated it entered right into a share buy settlement with Complete Austral S.A. “whereby, topic to the achievement of the situations precedents set forth within the settlement, YPF will purchase 100% … of the shares and capital inventory of Vaca Muerta Inversiones S.A.U.”.
“The whole transaction quantity is $500,000,000, topic to changes at closing primarily based on the corporate’s money flows between January 2025 and the cut-off date,” YPF added.
“If precedent situations are fulfilled, Vaca Muerta Inversiones S.A.U. will maintain a forty five p.c curiosity within the Joint Enterprise Settlement and Joint Settlement (contrato de union transitoria) equivalent to the La Escalonada and Rincón La Ceniza blocks within the Province of Neuquén,” it continued.
Commenting on the deal, Andy McConn, Director at Enverus Intelligence Analysis (EIR), instructed Rigzone, “we view the Vaca Muerta as one of the vital enticing world targets for buying high-quality unconventional stock at buyer-friendly costs”.
“The low cost to pricing for North American shale stock stays broad and, in our opinion, extra firms needs to be evaluating alternatives to enter the play contemplating the shortage of high-quality, low-breakeven oil useful resource out there within the world M&A market,” he added.
“Nevertheless, the current main offers have all gone to established leaders within the play, with Vista buying Petronas’ place and now YPF including to its place with the Complete transaction,” he continued.
Complete Austral’s companions within the Rincon La Ceniza and La Escalonada blocks are Fuel y Petroleo de Neuquen, which has a ten p.c stake, and O&G Developments LTD S.A, which has a forty five p.c stake, TotalEnergies’ assertion highlighted.
TotalEnergies identified in its assertion that it has been working in Argentina since 1978 and added that, as we speak, it “employs greater than 1,100 individuals in its enterprise segments, in exploration and manufacturing, renewable electrical energy (photo voltaic and wind), and lubricants”.
The corporate famous within the assertion that, via its Complete Austral affiliate, it’s the nation’s main worldwide fuel producer, “working some 25 p.c of manufacturing”. The corporate’s fairness share of manufacturing averaged 95,000 barrels of oil equal per day in 2024, TotalEnergies stated within the assertion.
YPF describes itself on its web site as the most important built-in hydrocarbons firm within the Southern Cone.
To contact the creator, e mail andreas.exarheas@rigzone.com
