Abu Dhabi’s international investments arm XRG and Italy’s integrated energy company Eni announced agreements today with Argentina’s state oil company YPF to take minority positions in three upstream natural gas blocks in Argentina.
Under the terms disclosed in separate statements by the two foreign companies, XRG and Eni will each acquire a 32% stake in the three blocks, while YPF will maintain a remaining 36% interest. Financial terms of the transactions were not provided by either purchaser.
The three concession areas named in the agreements are Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas. All three sit within the Vaca Muerta unconventional basin, a region identified in the statements as central to the country’s gas development strategy.
According to the companies, these upstream assets are linked to Argentina LNG, an integrated upstream-midstream effort that aims to develop liquefied natural gas capacity of 12 million tonnes per annum. Eni and XRG said the blocks are expected to supply the volumes required to feed floating LNG units contemplated under the Argentina LNG project.
The transaction was framed in the statements as significant for Argentina’s broader energy objectives. The project is described as important to national policy under President Javier Milei, with the government seeking to raise energy exports as a means of bolstering dollar reserves and reinforcing confidence in its ability to preserve a stable currency.
Neither XRG nor Eni provided financial details of their respective purchases in their public statements. The declarations focused on the ownership split and the role of the assets in supporting the planned LNG capacity.
A brief note on XRG included in the statements explains the unit is the international investments arm of Abu Dhabi National Oil Company and was formed to pursue acquisitions across natural gas, chemicals and energy solutions. The company reiterated a stated target of achieving 20 million to 25 million tonnes per annum of LNG capacity by 2035.
The announcements do not alter YPF’s remaining position in the three blocks; the state oil company will continue to hold 36% after the transfers to XRG and Eni. Beyond ownership percentages and the intended role of the assets in the Argentina LNG project, further operational or financial details were not released.
Context and implications
The deals signal international participation in the development of Vaca Muerta assets tied to an explicit LNG capacity target. The statements link the upstream transactions to midstream plans for floating LNG, identifying a direct supply role for the acquired blocks. The announcements highlight the policy emphasis on export-led energy development as part of Argentina’s macroeconomic strategy under the current government.