The stake that XRG intends to acquire is 32% and supports the company's plans to implement its strategy aimed at building a flexible global platform for gas and liquefied natural gas.

Abu Dhabi, UAE – XRG, the international energy investment arm of ADNOC, and Italy’s Eni, announced the signing of sale and purchase agreements with Argentina’s YPF to acquire a 32% stake each in three exploration, development, and production blocks. YPF will retain a 36% stake in these blocks. The agreements are subject to regulatory approvals. These blocks are a key part of Argentina’s 12 million tons per annum liquefied natural gas (LNG) project, for which XRG previously announced a joint development agreement with YPF and Eni.

This investment supports XRG’s strategy to build a flexible global platform for gas and LNG, by establishing the company’s presence in exploration, development and production within one of the world’s most important unconventional gas basins, and ensuring its participation in a new opportunity to export LNG by linking Vaca Muerta’s basin resources to global markets.

On this occasion, Mohamed El-Eryani, President of XRG's International Gas Platform, said: "Argentina possesses the capabilities and potential to play a pivotal role in meeting the growing global demand for natural gas. The Argentina LNG project is a cornerstone in achieving this goal, as the Vaca Muerta basin contains one of the world's largest and richest gas reserves. Through this transaction, XRG will participate in a project with exceptional resources and long-term potential, positioning it to become a significant and reliable new source of LNG supplies to global markets. We are pleased to collaborate on this project with YPF, our strategic partner, which has extensive experience and high competence in the Argentine energy sector and is playing a key role in the development of the Vaca Muerta field, as well as with Eni, a leader in developing floating LNG projects."

YPF operates the Mesita Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks in the exploration, development, and production (EPP) sector of the Vaca Muerta onshore unconventional gas basin in Argentina. These concessions are expected to form a key part of the EPP's integrated Argentina LNG project, with a final investment decision anticipated in 2027. The goal is to maximize the utilization of gas resources in the Vaca Muerta basin and support the development of a new, long-term source of LNG supply to global markets.

Through this move, XRG strengthens its strategic role in Argentina’s LNG project and enhances its access to more long-term gas resources. This investment also establishes a strong partnership between XRG and YPF, Argentina’s national energy company and a key developer of the Vaca Muerta basin, creating an effective platform for developing one of the world’s most promising LNG export opportunities. Furthermore, this investment is a major step in XRG’s efforts to implement its strategic plan and build a global, integrated, and flexible platform spanning the gas, LNG, and chemicals value chains. These resources are expected to provide the gas volumes needed to operate several floating storage and regasification units (FSRUs), while also supporting revenue generation from associated condensate production.

Horacio Marin, CEO of YPF, said: "We continue to make tangible progress in the development of the Argentina LNG project, where XRG and Eni's participation in exploration, development and production within the project works contributes to strengthening the value chain and supporting the project's development on a global scale."

Guido Brusco, CEO of Global Natural Resources Operations at Eni, said: “Eni’s partnership with XRG and YPF in the unconventional Vaca Muerta basin enhances Eni’s ability to develop world-class gas resources and convert them into competitive LNG for global markets. This basin is one of the largest and richest gas reservoirs in the world, so our participation strengthens our presence across the value chain, from exploration, development and production in Argentina to the transportation and distribution of LNG to customers worldwide, generating strong returns and contributing to global energy security.”

Upon completion of the transaction, this investment will contribute to strengthening XRG’s growing portfolio of gas and LNG businesses globally, which includes investments in the Rio Grande LNG project in the USA, the Absheron gas and condensate field in Azerbaijan, gas and condensate fields within offshore Area 1 in Turkmenistan, and the Area 4 concession in the Rovuma Basin of natural gas in Mozambique, including the Coral North floating LNG project and the Rovuma onshore LNG project, both of which are under development. These investments support XRG’s objectives of building a geographically diversified and integrated gas platform that spans major supply locations, global demand centers, and long-term growth markets.

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#Company Data

About " XRG ":

XRG is a leading international energy investment company wholly owned by ADNOC and headquartered in Abu Dhabi. XRG focuses on natural gas, chemicals, and scalable energy solutions, contributing to the development of artificial intelligence and enhancing the global industrial sector.

The company’s portfolio includes operating and non-operating stakes in a number of leading energy assets and companies that contribute to meeting the rapidly increasing global demand for energy and chemicals essential for sustainable economic growth.

For more information, please visit: www.xrg.com

For media inquiries, please contact: media@XRG.com

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