en.Wedoany.com Reported - XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), and Italy's Eni have each signed agreements to acquire a 32% stake in three Vaca Muerta shale gas blocks in Argentina, as announced in July 2026. The three blocks—Aguada Villanueva, Las Tacanas, and Meseta Buena Esperanza—are currently held by YPF (Argentina's national oil company), which will retain a 36% operating interest after consolidating full ownership of these assets. Both transactions are subject to regulatory approval in Argentina.
The acquisition is structured as follows: XRG and Eni each hold 32%, while YPF, as operator, retains the remaining 36% interest. YPF obtained full ownership of the three blocks earlier in 2026 through a swap transaction with Pluspetrol, leading to this tripartite split. Although the agreements have been signed, they have not yet been finalized.
These block transactions are directly linked to the Argentina LNG project. Earlier in 2026, XRG, Eni, and YPF signed a joint development agreement for the project, which revolves around two floating liquefaction facilities with a total capacity of 12 million tons per year. The upstream assets are intended to supply the required gas volumes for these floating LNG units, while also monetizing associated gas condensate to add another revenue stream to the project's economics. XRG strategically framed this move as securing upstream participation in one of the world's most significant unconventional gas basins and playing a role in a major new LNG export opportunity, connecting Vaca Muerta resources to global markets.
Each partner has its own strategic considerations. XRG has publicly set a target to build a top-five integrated gas and LNG business with a capacity of 20 to 25 million tons per year by 2035, and this deal helps increase its upstream exposure in this shale formation. Eni stated that the transaction aligns with its strategy to strengthen and diversify its upstream gas portfolio, develop integrated projects along the value chain, and expand its LNG equity marketing. YPF CEO Horacio Marín noted that the entry of Eni and XRG strengthens the project's value chain, allowing YPF to advance development on a global scale, and that such international support is crucial for a project of this size and complexity. XRG President Mohamed Al Aryani pointed out that Argentina has the potential to play a significant role in meeting the world's growing demand for natural gas, and projects like Argentina LNG will be key to unlocking this opportunity.
XRG was established by Abu Dhabi National Oil Company (ADNOC) at the end of 2024 to specifically lead the UAE's expansion in natural gas, low-carbon energy, and chemical markets. Its existing portfolio includes the US Rio Grande LNG, the Absheron offshore gas and condensate field in Azerbaijan, the Offshore Block 1 gas concession in Turkmenistan, and the Rovuma Basin Area 4 concession in Mozambique. Argentina adds a new geographic region to this strategy. Vaca Muerta is one of the world's largest unconventional gas formations, and Argentina's ability to monetize it at scale has previously been constrained by limited export infrastructure; the floating LNG solution is designed to address this bottleneck.
The specifics of the transaction are as follows: XRG and Eni have each agreed to acquire a 32% stake in three Vaca Muerta shale gas blocks, with YPF retaining a 36% operating interest. The upstream equity is directly tied to the broader Argentina LNG project, which plans to build two floating liquefaction units with a total capacity of 12 million tons per year, and these blocks are expected to supply the required gas for the units. For XRG, this deal brings it closer to its target of achieving 20 to 25 million tons per year of integrated gas and LNG capacity by 2035; Eni gains diversified upstream gas exposure and broader LNG equity marketing coverage; for YPF, two major international partners are now ready to help develop one of Argentina's significant energy export opportunities. The transaction awaits regulatory approval, but the direction is clear: three energy giants are betting that Vaca Muerta's gas can reach global markets, and floating LNG is the means to achieve this.
