A High-Stakes Shuffle Reignites Vaca Muerta

YPF’s buyout of TotalEnergies’ stake sharpens focus on pipelines and future exports in Argentina’s prized shale region

25 Nov 2025

Argentina’s state-backed oil company YPF has taken full operating control of two shale blocks in Vaca Muerta after agreeing to acquire TotalEnergies’ majority stakes, a move that signals a new stage of consolidation in the country’s largest energy basin.

The deal gives YPF operatorship of the La Escalonada and Rincón La Ceniza areas, acreage long viewed as rich in oil and gas. The company expects tighter planning across its northern assets, shorter drilling cycles and more consistent output. Executives said the change would “strengthen coherence” in the portfolio and support faster development.

TotalEnergies is refocusing its global portfolio but is not leaving Argentina. Its decision reflects how multinational groups continue to adjust their exposure to regions where infrastructure and policy conditions remain uncertain. The French group maintains other interests in the country.

Following the transaction, YPF and Shell Argentina each hold equal shares in the two blocks, with provincial company Gas y Petróleo de Neuquén retaining a minority stake. The simplified partnership is expected to ease coordination as new pipelines and export routes progress. Shell keeps a presence in the projects without the operational pressures of day-to-day management.

Analysts note that the basin’s next phase depends on improvements to transport links and the emergence of liquefied natural gas corridors. They warn that slow infrastructure development could limit near-term gains despite a more stable investment climate compared with earlier cycles.

For now, investor sentiment around Vaca Muerta remains positive. Rising capital flows and a clearer ownership structure have reinforced expectations that the shale formation could play a larger role in Argentina’s future energy supply.