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Eni and XRG said in separate statements that the two firms will each take a 32 percent stake in three upstream blocks (Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas), which are part of the unconventional Vaca Muerta basin in Argentina.
YPF said in a statement that it will sell equity stakes in UPCO ARLNG I, the company that will hold the gas blocks in Vaca Muerta allocated to the project.
Following completion of the transaction, which remains subject to approval by the relevant authorities, YPF will hold 36 percent, Eni 32 percent, and XRG 32 percent in the three upstream blocks.
The partners did not provide further details regarding the agreements.
These assets’ resources will feed the 12 million tons per annum (mtpa) of LNG capacity via two floating LNG units, each with 6 mtpa of capacity.
Earlier this year, XRG signed a binding agreement with YPF Eni to join the 12 mtpa phase of the integrated Argentina LNG project.
Under the agreement, the partners will commence front-end engineering design (FEED) and related activities, including engineering, technical structuring, and key commercial and financing workstreams.
The three firms are also evaluating the addition of a third FLNG to further boost the capacity of the 12 mtpa phase of the integrated Argentina LNG project, according to YPF CEO Horacio Marin.
Marin said that the partners are targeting a final investment decision (FID) for 2026.
He said that commercial operations for the first floating LNG unit are expected by 2030, and for the second unit by 2031.
This large-scale integrated gas and liquefaction project will unlock Argentina’s Vaca Muerta shale basin and help position the country as a long-term global LNG supplier.