Eni SpA and Abu Dhabi National Oil Co PJSC’s international investment arm, XRG PJSC, have signed agreements to each acquire a 32 percent ownership in three blocks in Argentina’s Vaca Muerta gas shale.
The South American country’s state-controlled YPF SA, which has assumed full ownership of the Aguada Villanueva, Las Tacanas and Meseta Buena Esperanza blocks after a swap transaction with Pluspetrol earlier this year, retains a 36 percent operating interest.
“The upstream assets are expected to supply the gas volumes needed to feed floating LNG units, while also supporting the monetization of condensates associated with gas production”, XRG said in an online statement.
Earlier in 2026 the three companies signed a “joint development agreement” for Argentina LNG that consists of two floating liquefaction facilities with a combined capacity of 12 million metric tons per annum (MMtpa).
“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”, the ADNOC company added.
XRG aims to build a top-five integrated gas and LNG business with a capacity of 20-25 million MMtpa by 2035, as announced by the company June 3, 2025. ADNOC launched XRG late 2024 to lead the United Arab Emirates’ expansion in the natural gas, low-carbon energy and chemical markets.
“Argentina has the potential to play an increasingly important role in meeting the world’s growing demand for natural gas, and projects such as Argentina LNG will be important to unlocking that opportunity”, XRG president for international gas Mohamed Al Aryani said about the block acquisitions.
“Once completed, the transaction will add to XRG’s growing global gas and LNG portfolio, which includes interests in Rio Grande LNG in the United States, the Absheron offshore gas and condensate field in Azerbaijan, the Offshore Block 1 gas concession and condensate field in Turkmenistan, and the Area 4 concession in Mozambique’s Rovuma basin, including the planned Coral North FLNG and Rovuma LNG onshore development projects”, the company added.
Italy’s state-backed Eni said separately, “The transaction represents a further significant step towards the maturation of the Argentina LNG project and is in line with Eni’s strategy to strengthen and diversify its upstream gas portfolio, develop integrated projects along the value chain, and expand the marketing of LNG equity, while contributing to the security and competitiveness of energy supplies”.
YPF chair and chief executive Horacio Marín said in a separate statement, “The entry of Eni and XRG into the upstream segment strengthens the project’s value chain and allows us to move toward its development on a global scale”.
The transaction is subject to approval by authorities, the companies said.