A Power Swap Recasts Argentina’s Shale Future

TotalEnergies pulls back from Vaca Muerta as YPF takes charge and accelerates Argentina’s shale ambitions

9 Dec 2025

YPF has acquired the operated stake that TotalEnergies held in two Vaca Muerta blocks, in a transaction valued at $500mn, giving the state-backed producer greater control over one of Argentina’s most active shale areas. Shell and Gas y Petróleo de Neuquén remain partners, but operational direction will now rest largely with YPF.

The deal provides the company with more scope to align drilling schedules with its plans to raise output and secure stable export routes. Executives have been seeking to tighten project timelines, expand transport capacity and attract new funding as production in the basin reaches record levels.

TotalEnergies described its withdrawal as part of a broader shift toward offshore and conventional gas assets that it views as more stable. A senior figure said the group wanted to focus on fields “capable of delivering reliable value”, noting that global operators continue to face pressure to balance returns against policy and price volatility.

Analysts say the move fits a wider regional trend in which international groups refine their shale portfolios while governments place greater responsibility on national oil companies to sustain investment. Some warn that a reduced foreign presence could slow the arrival of new technology. Others argue that YPF’s expanded role may streamline decision-making and support a more coherent development plan.

Infrastructure remains a constraint. Pipelines, storage facilities and export points will need to grow to keep pace with rising volumes, while securing long-term finance continues to be difficult. Even so, Vaca Muerta’s rapid output growth and increasing interest from buyers seeking dependable supply have strengthened expectations that Argentina could expand its share of the regional energy market.

The shift in operators marks an important moment for the basin. Policy choices and investment decisions in the coming period will shape the speed and structure of South America’s shale development.