ExxonMobil is reportedly weighing offers for its oil and gas assets in Argentina’s Vaca Muerta shale region, according to a Reuters report.
Bloomberg previously reported that the US-based energy company was exploring a $1bn sale of its Argentine shale assets, a process that began in 2023.
Last week, Mexican firm Vista Energy, touted to be the largest shale oil producer in Argentina after state-owned company YPF, expressed its interest in acquiring ExxonMobil’s Vaca Muerta assets.
Vista Vista EnergyCEO Miguel Galuccio told Reuters: “They have interesting assets. And yes, we are looking into that.”
YPF, Pampa Energia, and Tecpetrol are partners in some of the acreage that ExxonMobil could be selling.
Last year, ExxonMobil placed all its Argentine shale assets under review, in what is seen as a blow to Argentina’s hopes of fully exploiting the riches of Vaca Muerta.
A source told Reuters: “The process began in August, it continues to advance, and the offers are being evaluated, asking not to be named as the matter was confidential. The person added that the firm had received offers earlier this month.
“At the beginning of February, they presented binding offers. There is no time or due date to provide a response to say how the operation continues. They are being evaluated by the shareholders.”
ExxonMobil’s assets in Argentina include stakes in seven oil and gas blocks in Vaca Muerta, which is said to be the second-largest shale gas reserve in the world and fourth biggest for shale oil.
Amid an ongoing economic crisis, Argentina is pinning its hopes on Vaca Muerta to transform the nation into a powerhouse for energy and reduce reliance on expensive imports.
The economic crisis has posed challenges for companies operating in the country, but the government is said to be making significant efforts to increase investment in Vaca Muerta.
The proposed sale is expected to exclude a major global service centre housing nearly 3,000 employees in the country’s capital Buenos Aires.
Argentina`s new President, Javier Milei, is grappling with an economic crisis marked by inflation exceeding 250%, dwindling foreign currency reserves, and stringent capital controls aimed at safeguarding the currency.
