TotalEnergies Seeks Exit from Argentine Shale Oil Assets

Jun 27, 2025

France’s TotalEnergies is in advanced talks to sell its shale oil assets in Argentina, with at least two suitors having submitted bids, according to sources familiar with the matter. The move aligns with CEO Patrick Pouyanné’s earlier statement that the company would consider divesting its stakes at the right price.

While Total declined to comment, the reported bids target its interests in the La Escalonada and Rincon La Ceniza oil fields. These are located in the less-developed northern stretch of the Vaca Muerta formation, an area with significant untapped potential. Total holds 45% in each field, as does Shell, while local state-run firm GyP del Neuquén controls the remaining 10%.

Production from Argentina’s Vaca Muerta shale play continues to surge, with output reaching over 442,000 barrels per day in April—up 22% from a year earlier. However, domestic companies are increasingly leading that growth, while international players such as Total, ExxonMobil, and Malaysia’s Petronas are seeking exits.

The shift comes as President Javier Milei’s pro-market reforms, including relaxed capital controls, have raised valuations across the energy sector, creating a favorable window for asset sales. Global firms are taking the opportunity to divest and redirect capital to higher-priority projects elsewhere. Notably, TotalEnergies is not exiting Argentina entirely. Its shale gas assets remain off the market, and the company is actively promoting Argentina as a future gas supplier to Brazil, signaling a continued regional strategy focused on natural

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