Abu dhabi: XRG and Eni have each signed agreements with YPF for the acquisition of a 32% interest in three upstream blocks, with YPF retaining the remaining 36%. Completion of the transactions remains subject to customary regulatory approvals. The upstream blocks are expected to form a core part of the integrated 12 million tonnes per annum (MTPA) ARGENTINA Liquified Natural Gas (LNG) project, complementing XRG's previously announced joint development agreement with YPF and Eni, and advancing key project components in line with the development plan.
According to Emirates News Agency, for XRG, the proposed investment supports its strategy to build a resilient global gas and LNG platform by securing upstream participation in one of the world's most significant unconventional gas basins and developing its role in a major new LNG export opportunity designed to connect Vaca Muerta's gas resources with global markets. YPF operates the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas upstream blocks in the unconventional Vaca Muerta basin, located onshore Argentina. These blocks are expected to form a core upstream component of ARGENTINA LNG's integrated development, helping to anchor a large-scale upstream-midstream platform designed to unlock Vaca Muerta's gas resources and support the development of a major new long-term LNG supply source for the global LNG market.
By securing upstream participation in one of the world's most significant unconventional gas basins, XRG will secure its access to long-term resource depth and take a meaningful position in the broader ARGENTINA LNG project. The proposed investment also establishes a strong partnership with YPF, Argentina's national energy champion and a leading force in the development of Vaca Muerta, creating an attractive platform to help advance one of the most promising new LNG export opportunities in the global market. This marks a major step in XRG's ambition to build a resilient, integrated, and globally scaled gas platform spanning gas, LNG, and chemicals.
The upstream assets are expected to supply the gas volumes needed to feed floating LNG units, while also supporting the monetisation of condensates associated with gas production. Mohamed Al Aryani, President of International Gas, XRG, emphasized Argentina's potential to play a crucial role in meeting the world's growing demand for natural gas, and the importance of projects such as ARGENTINA LNG in unlocking that opportunity.
Horacio Marn, Chairman and CEO of YPF, highlighted the strengthening of the project's value chain with the entry of Eni and XRG into the upstream segment, allowing for its development on a global scale. Eni's Chief Operating Officer Global Natural Resources, Guido Brusco, commented on the strategic positioning across the entire value chain, from Argentine upstream to international LNG supply, contributing to global energy security.
Once completed, the transaction will add to XRG's growing global gas and LNG portfolio, which includes interests in various international projects. Together, these investments support XRG's ambition to build a geographically diversified, integrated gas platform across key supply bases, LNG corridors, and long-term growth markets.