BUENOS AIRES, July 1 — The figure that matters: 32 percent. That is the stake each of two international energy giants—Eni SpA and XRG PJSC, the international investment arm of Abu Dhabi National Oil Co—have agreed to acquire in three blocks in Argentina’s Vaca Muerta shale formation. The bottom line: Argentina’s state-controlled YPF SA retains a 36 percent operating interest in the Aguada Villanueva, Las Tacanas and Meseta Buena Esperanza blocks, after completing a swap transaction with Pluspetrol earlier this year.
XRG said in an online statement that 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. The three companies earlier in 2026 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.
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 metric tons per annum by 2035, as announced by the company on June 3, 2025.
ADNOC launched XRG in late 2024 to lead the United Arab Emirates’ expansion in the natural gas, low-carbon energy and chemical markets. Investors will note the strategic logic: 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, according to XRG president for international gas Mohamed Al Aryani.
